±err> 


Southern  Branch 
of  the 

University  of  California 

Los  Angeles 

Form  L  1 

Q,eo\ 


This  book  is  DUE  on  the  last  date  stamped  below 


OCT  13  t34j' 

SEP  2     1347 

JAN  2b '-'^ 
OECl  :4W9 


Form  L-9-5)n-7,'23 


SELLING  EXPENSES 

AND  THEIR  CONTROL 

A  Study  in  the  Retail  Distribution  of  Clothing' 


BY 

NORTHWESTERN    UNIVERSITY    SCHOOL   OF    COMMERCE 
BUREAU   OF    BUSINESS    RESEARCH 

HORACE     SECKIST,     DIRECTOR 


IN    CO-OPERATION    WITH     THE 

NATIONAL  ASSOCIATION  OF  RETAIL  CLOTHIERS 


44392 

PRENTICE-HALL,   Inc. 
NEW   YORK    CITY 


COPTEIGHT,     1922 

nohthwestern  university  ajtd 
National  Association  of  Retail  Clotheebs 


PRINTED    IN    THE    UNITED    STATES    OF    AMERICA 


4* 


«0 


s 


PREFACE 


This  study  was  undertaken  for  two 
primary  purposes:  first,  to  determine 
what  it  costs  to  sell  clothing  in  stores 
operating  as  independent  units,  and 
second,  to  find,  if  possible,  the  prin- 
ciples governing  these  costs  and  the 
methods  by  which  they  may  be  con- 
trolled. 

A  previous  study  made  by  the  Bu- 
reau of  the  retail  cost  of  distributing 
clothing  showed  that  it  was  necessary 
to  classify  stores  by  years,  by  size  and 
by  location.  Accordingly,  such  a 
classification  is  provided  for  in  this 
analysis.  But  here  the  study  is  pushed 
further.  It  answers  the  question: 
What  are  the  conditions  which  con- 
trol the  amounts  of  selling  expense? 
and  it  measures  the  degree  to  which 
the  control  is  exerted  under  different 
conditions  of  store  operation. 

The  study  was  begun  on  the  basis 
of  certain  hypotheses  which,  on  an  a 
priori  basis,  seemed  to  summarize  the 
conditions  controlling  selling  expense. 
These  hypotheses  were  tested  statisti- 
cally on  the  basis  of  store  records  for 
different  years  and  for  stores  of  dif- 
ferent size  and  location.  Briefly,  the 
analysis  has  led  to  the  conclusion  that 


the  relations  of  selling  expense  to  sales 
and  to  total  operating  expense  are 
governed  by  conditions  which,  to  a 
large  degree,  are  subject  to  effective 
merchandising  control ;  that  they  vary 
according  to  clearly  defined  princi- 
ples; and  that  these  principles  can 
be  stated  and  the  conditions  of  ex- 
pense distribution  under  them  meas- 
ured. In  a  word,  the  analysis  has  led 
to  the  belief  that  there  are  certain 
master  or  controlling  facts  behind  in- 
dividual facts,  as  they  show  them- 
selves in  modem  business,  and  that 
these  may  be  revealed  through  statis- 
tical analysis  of  mass  information. 
There  is  a  science  of  business.  Its 
principles  can  be  stated  so  that  those 
who  are  interested  can,  if  they  will, 
act  in  the  light  of  them  rather  than 
in  the  grip  of  blind  routine. 

In  the  preparation  of  this  study, 
the  value  of  the  services  of  the  entire 
staff  of  the  Bureau  is  cheerfully  ac- 
knowledged. Special  mention,  how- 
ever, should  be  made  of  the  part 
which  has  been  taken  by  Miss  Blanche 
Altman,  assistant  to  the  Director,  and 
by  Miss  Irmgard  J.  Grabbe,  the  Di- 
rector's secretary. 

Northwestern  University  School  of  CommeTce, 

Bureau  of  Business  Kesearch, 

Horace  Secrist,  Director 


CONTENTS 

PAGE 
I.    INTRODUCTION     1 

II.    SUMMARY    3 

1.  Units  of  Measurement  Used  in  the  Tables  and  Text 3 

2.  Amounts  of  Selling  Expense  and  its  Components,  Wages  and 

Salaries,  Advertising,  and  Other  Selling  Expense,  for 
Stores  Classified  by  Years,  by  Size,  and  by  Location 5 

3.  Amounts  of  Selling  Expense  and  its  Components,  Wages  and 

Salaries  and  Advertising,  in  Relation  to  the  Amounts  of 
Stock  Carried    17 

4.  Amounts  of  Selling  Expense  and  its  Components,  Wages  and 

Salaries,  Advertising,  and  Other  Selling  Expense,  in  Rela- 
tion to  the  Amounts  Sold  per  Full-time  Sales-person ....       20 

5.  Amounts  of  Selling  Expense  and  its  Components,  Wages  and 

Salaries  and  Advertising,  in  Relation  to  Expenditures  for 
Rent 24 

6.  Amounts  of  Selling  Expense  and  its  Components,  Wages  and 

Salaries  and  Advertising,  in  Relation  to  the  Amounts  of 
Fixture  Investments  per  $100  of  Total  Net  Sales 26 

7.  Amounts  of  Selling  Expense  and  its  Components,  Wages  and 

Salaries  and  Advertising,  in  Relation  to  Investments  in 
Fixtures  per  100  Square  Feet  of  Floor  Space 28 

8.  Amounts  of  Selling  Expense  and  its  Components,  Wages  and 

Salaries  and  Advertising,  in  Relation  to  Expenditures  for 
Advertising  per  $100  of  Total  Net  Sales 30 

9.  Amounts  of  Selling  Expense  and  its  Components,  Wages  and 

Salaries  and  Advertising,  for  Stores  Classified  by  Expen- 
ditures for  Advertising,  by  Methods  of  Paying  Salesmen, 
and  by  Relative  Rates  of  Profit  per  $100  of  Total  Net  Sales      32 

III.    SELLING  EXPENSE  AND  EXPENSE  RATIOS  IN  CLOTHING  STORES 34 

1.     Selling  Expense  for  Clothing  Stores  Classified  by  Years,  by 

Size,  and  by  Location  34 

A.  Yearly  Amounts  of  Selling  Expense  per  $100  of  Total 

Net  Sales  and  per  $100  of  Total  Expense,  1919,  1918, 
and   1914    34 

B.  Yearly  Amounts  of  Selling  Expense  per  $100  of  Total 

Net  Sales  and  per  $100  of  Total  Expense,  for  Stores  in 
1919,  1918,  and  1914,  Classified  by  Size 36 

V 


PAGE 

C.  Yearly  Amounts  of  Selling  Expense  per  $100  of  Total 

Net  Sales  and  per  $100  of  Total  Expense,  for  Stores  in 
1919,  1918,  and  1914,  Classified  by  Size  of  City  in 
"Which  Located   37 

D.  Yearly  Amounts  of  Selling  Expense  per  $100  of  Total 

Net  Sales  and  per  $100  of  Total  Expense,  for  Stores 
Classified  by  Size  and  by  Size  of  City  in  Which  Lo- 
cated, 1919,  1918,  and  1914 41 

E.  Summary 52 

2.  Yearly    Amounts    of    Selling    Expense    in    Relation    to    the 

Amounts  of  Stock  Carried,  for  Stores  Classified  by  Years, 

by  Size,  and  by  Rates  of  Stock  Turnover 53 

A.  Yearly  Amounts  of  Selling  Expense  per  $100  of  Total 

Net  Sales  and  per  $100  of  Total  Expense,  1919,  1918, 
and   1914    53 

B.  Yearly  Amounts  of  Selling  Expense  per  $100  of  Total 

Net  Sales  and  per  $100  of  Total  Expense,  for  Stores 
Classified  by  Size,  1919,  1918,  and  1914 60 

C.  Yearly  Amounts  of  Selling  Expense  per  $100  of  Total 

Net  Sales  and  per  $100  of  Total  Expense,  for  Stores 
Classified  by  Rates  of  Stock  Turnover  and  by  Size,  1919      75 

D.  Summary 85 

3.  Yearly    Amounts    of    Selling    Expense    in    Relation    to    the 

Amounts  of  Goods  Sold  per  Full-time  Sales-person  and  to 
the  Methods  by  "Which   Salesmen  are   Paid,   for   Stores 

Classified  by  Years,  by  Size,  and  by  Location 85 

(1).    Yearly   Amounts   of   Selling   Expense   in   Relation   to 

Amounts  of  Goods  Sold  per  Full-time  Sales-person . .       86 

A.  Yearly  Amounts  of  Selling  Expense  per  $100  of 

Total  Net  Sales  and  per  $100  of  Total  Expense, 
1919,  1918,  and  1914 86 

B.  Yearly  Amounts  of  Selling  Expense  per  $100  of 

Total  Net  Sales  and  per  $100  of  Total  Expense, 
for  Stores  Classified  by  Size,  1919,  1918,  and  1914  89 
CJ.  Yearly  Amounts  of  Selling  Expense  per  $100  of 
Total  Net  Sales  and  per  $100  of  Total  Expense, 
for  Stores  Classified  by  Size  and  by  Size  of  City 
in  Which  Located,  1919   112 

D.     Summary    118 

(2).    Yearly  Amounts  of  Selling  Expense  in  Relation  to  the 

Methods  by  Which  Salesmen  are  Paid 118 

A.    Yearly  Amounts  of  Selling  Expense  per  $100  of 
Total  Net  Sales  and  per  $100  of  Total  Expense, 

for  Stores  Classified  by  Size,  1919 119 

vi 


PAGE 

Yearly  Amounts  of  Selling  Expense  in  Relation  to  Expendi- 
tures for  Rent  and  to  Investments  in  Fixtures  for  Stores 

Classified  by  Years,  by  Size,  and  by  Location 127 

(1).  Yearly  Amounts  of  Selling  Expense  in  Relation  to  Ex- 
penditures for  Rent  per  100  Square  Feet  of  Floor 
Space    , 127 

A.  Yearly  Amounts  of  Selling  Expense  per  $100  of 

Total  Net  Sales  for  Stores  Classified  by  Size,  1919     127 

B.  Yearly  Amounts  of  Selling  Expense  per  $100  of 

Total  Net  Sales  for  Stores  Classified  by  Size  of 
City  in  Which  Located,  1919 136 

C.  Yearly  Amounts  of  Selling  Expense  per  $100  of 

Total  Net  Sales  for  Stores  Classified  by  Size  and 

by  Size  of  City  in  Which  Located,  1919 139 

D.  Summary    140 

(2).  Yearly  Amounts  of  Selling  Expense  in  Relation  to  In- 
vestments in  Fixtures  per  $100  of  Total  Net  Sales.  . .     141 

A.  Yearly  Amounts  of  Selling  Expense  per  $100  of 

Total  Net  Sales  and  per  $100  of  Total  Expense, 
1919,  1918,  and  1914 141 

B.  Yearly  Amounts  of  Selling  Expense  per  $100  of 

Total  Net  Sales  and  per  $100  of  Total  Expense, 

for  Stores  Classified  by  Size,  1919,  1918,  and  1914     144 

C.  Yearly  Amounts  of  Selling  Expense  per  $100  of 

Total  Net  Sales  and  per  $100  of  Total  Expense, 
for  Stores  Classified  by  Amounts  of  Inventory  in 
Relation  to  Sales,  1919   155 

D.  Yearly  Amounts  of  Selling  Expense  per  $100  of 

Total  Net  Sales,  for  Stores  Classified  by  Rates  of 
Stock  Turnover,  1919 161 

E.  Summary    163 

(3).  Yearly  Amounts  of  Selling  Expense  in  Relation  to  In- 
vestments in  Fixtures  per  100  Square  Feet  of  Floor 
Space 164 

A.  Yearly  Amounts  of  Selling  Expense  per  100  Square 

Feet  of  Floor  Space  and  per  $100  of  Total  Net 
Sales,  for  Stores  Classified  by  Size,  1919 164 

B.  Summary    170 

Yearly  Amounts  of  Selling  Expense  in  Relation  to  Expendi- 
tures for  Advertising,  for  Stores  Classified  by  Years,  by 

Size,  and  by  Location 170 

A.     Yearly  Amounts  of  Selling  Expense  per  $100  of  Total 
Net  Sales  and  per  $100  of  Total  Expense,  for  Stores 

Classified  by  Size,  1919,  1918,  and  1914 170 

vii 


PAGE 

B.  Yearly  Amounts  of  Selling  Expense  per  $100  of  Total 

Net  Sales  and  per  $100  of  Total  Expense,  for  Stores 
Classified  by  Size  of  City  in  Which  Located,  1919 182 

C.  Summary  185 

IV,    WAGES  AND  S.MiARIES  CHARGEABLE  TO  SELLING 187 

1.  Amounts   of   Wagres   and   Salaries   for   Stores   Classified   by 

Years,  by  Size,  and  by  Location 187 

A.  Yearly  Amounts  of  Wages  and  Salaries  per  $100  of  Total 

Net   Sales  and   per  $100   of   Selling   Expense,    1919, 

1918,  and  1914   187 

B.  Yearly  Amounts  of  Wages  and  Salaries  per  $100  of  Total 

Net  Sales  and  per  $100  of  Selling  Expense,  for  Stores 

in  1919,  1918,  and  1914,  Classified  by  Size 189 

C.  Yearly  Amounts  of  Wages  and  Salaries  per  $100  of  Total 

Net  Sales  and  per  $100  of  Selling  Expense,  for  Stores 
in  1919,  1918,  and  1914,  Classified  by  Size  of  City  in 
Which  Located   189 

D.  Yearly  Amounts  of  Wages  and  Salaries  per  $100  of  Total 

Net  Sales  and  per  $100  of  Selling  Expense,  for  Stores 
Classified  by  Size  and  by  Size  of  City  in  Which  Located, 

1919,  1918,  and  1914 195 

E.  Summary  204 

2.  Yearly  Amounts  of  Wages  and  Salaries  in  Relation  to  the 

Amounts  of  Stock  Carried,  for  Stores  Classified  by  Years 
and  by  Size 204 

A.  Yearly  Amounts  of  Wages  and  Salaries  per  $100  of  Total 

Net  Sales  and  per  $100  of  Selling  Expense,  1919,  1918, 

and  1914 204 

B.  Yearly  Amounts  of  Wages  and  Salaries  per  $100  of  Total 

Net  Sales  and  per  $100  of  Selling  Expense,  for  Stores 
Classified  by  Size,  1919,  1918,  and  1914  210 

C.  Summary  226 

3.  Yearly  Amounts  of  Wages  and  Salaries  in  Relation  to  the 

Amounts  of  Goods  Sold  per  FuU-time  Sales-person  and 
to  the  Methods  by  Which  Salesmen  are  Paid,  for  Stores 

Classified  by  Years,  by  Size,  and  by  Location 226 

(1).     Yearly  Amounts  of  Wages  and  Salaries  in  Relation  to 

the  Amounts  of  Goods  Sold  per  Full-time  Sales-person     227 

A.  Yearly  Amounts  of  Wages  and  Salaries  per  $100  of 

Total  Net  Sales  and  per  $100  of  Selling  Expense, 
1919,  1918,  and  1914  227 

B.  Yearly  Amounts  of  Wages  and  Salaries  per  $100  of 

Total  Net  Sales  and  per  $100  of  Selling  Expense, 
for  Stores  Classified  by  Size,  1919,  1918,  and  1914    233 
viii 


0.  Yearly  Amounts  of  Wages  and  Salaries  per  $100  of 
Total  Net  Sales  and  per  $100  of  Selling  Expense, 
for  Stores  Classified  by  Size  and  by  Size  of  City 
in  Which  Located,  1919   250 

D.     Summary    256 

(2).     Yearly  Amounts  of  Wages  and  Salaries  in  Relation  to 

the  Methods  by  Which  Salesmen  are  Paid   258 

A.  Yearly  Amounts  of  Wages  and  Salaries  per  $100  of 
Total  Net  Sales  and  per  $100  of  Selling  Expense, 

for  Stores  Classified  by  Size,  1919  258 

Yearly  Amounts  of  Wages  and  Salaries  in  Relation  to  the  Ex- 
penditures  for   Rent   and   Investments   in   Fixtures,    for 

Stores  Classified  by  Years,  by  Size,  and  by  Location 263 

(1).  Yearly  Amounts  of  Wages  and  Salaries  in  Relation  to 
Expenditures  for  Rent  per  100  Square  Feet  of  Floor 
Space 263 

A.  Yearly  Amounts  of  Wages  and  Salaries  per  $100  of 

Total  Net  Sales  and  per  $100  of  Selling  Expense, 

for  Stores  Classified  by  Size,  1919  264 

B.  Yearly  Amounts  of  Wages  and  Salaries  per  $100  of 

Total  Net  Sales  and  per  $100  of  Selling  Expense, 
for  Stores  Classified  by  Size  of  City  in  Which 
Located,   1919    266 

C.  Yearly  Amounts  of  Wages  and  Salaries  per  $100  of 

Total  Net  Sales  and  per  $100  of  Selling  Expense, 
for  Stores  Classified  by  Size  and  by  Size  of  City 
in  Which  Located,  1919 270 

D.  Summary    271 

(2).     Yearlj^  Amounts  of  Wages  and  Salaries  in  Relation  to 

Investments  in  Fixtures  per  $100  of  Total  Net  Sales     272 

A.  Yearly  Amounts  of  Wages  and  Salaries  per  $100  of 

Total  Net  Sales  and  per  $100  of  Selling  Expense, 
1919,  1918,  and  1914 272 

B.  Yearly  Amounts  of  Wages  and  Salaries  per  $100  of 

Total  Net  Sales  and  per  $100  of  Selling  Expense, 

for  Stores  Classified  by  Size,  1919,  1918,  and  1914    274 

C.  Yearly  Amounts  of  Wages  and  Salaries  per  $100  of 

Total  Net  Sales,  for  Stores  Classified  by  Amounts 

of  Inventory  per  $100  of  Total  Net  Sales,  1919 . .     285 

D.  Summary    290 

(3),  Yearly  Amounts  of  Wages  and  Salaries  in  Relation  to 
Investments  in  Fixtures  per  100  Square  Feet  of  Floor 

Space 291 

ix 


PAGE 

A.  Yearly  Amounts  of  "Wages  and  Salaries  per  $100  of 

Total  Net  Sales  and  per  $100  of  Selling  Expense, 

for  Stores  Classified  by  Size,  1919 291 

B.  Summary    295 

5.  Yearly  Amounts  of  Wages  and  Salaries  in  Relation  to  Ex- 
penditures for  Advertising,  for  Stores  Classified  by  Size, 
by  Location,  and  by  Rates  of  Stock  Turnover 295 

A.  Yearly  Amounts  of  Wages  and  Salaries  per  $100  of  Total 

Net  Sales  and  per  $100  of  Selling  Expense,  for  Stores 
Classified  by  Size,  1919 295 

B.  Yearly  Amounts  of  Wages  and  Salaries  per  $100  of  Total 

Net  Sales  and  per  $100  of  Selling  Expense,  for  Stores 
Classified  by  Size  of  City  in  Which  Located,  1919. ...     298 

C.  Yearly  Amounts  of  Wages  and  Salaries  per  $100  of  Total 

Net  Sales  and  per  $100  of  Selling  Expense,  for  Stores 
Classified  by  Rates  of  Stock  Turnover,  1919 301 

D.  Summary 304 

V.   EXPENDITURES  FOR  ADVERTISING 306 

1.  Expenditures  for  Advertising  for  Stores  Classified  by  Years, 

by  Size,  and  by  Location  306 

A.  Yearly  Amounts   of   Expenditure    for   Advertising   per 

$100  of  Total  Net  Sales  and  per  $100  of  Selling  Ex- 
pense, 1919,  1918,  and  1914 306 

B.  Yearly   Amounts   of   Expenditure   for   Advertising   per 

$100  of  Total  Net  Sales  and  per  $100  of  Selling  Ex- 
pense, for  Stores  in  1919,  1918,  and  1914,  Classified 
by  Size   308 

C.  Yearly   Amounts   of   Expenditure   for   Advertising   per 

$100  of  Total  Net  Sales  and  per  $100  of  Selling  Ex- 
pense, for  Stores  in  1919,  1918,  and  1914,  Classified  by 
Size  of  City  in  Which  Located 308 

D.  Yearly   Amounts   of   Expenditure    for   Advertising   per 

$100  of  Total  Net  Sales  and  per  $100  of  Selling  Ex- 
pense, for  Stores  Classified  bv  Size  and  by  Size  of  City 
in  Which  Located,  1919,  1918,  and  1914 315 

E.  Summary   318 

2.  Yearly  Amounts  of  Expenditure  for  Advertising  in  Relation 

to  the  Amounts  of  Stock  Carried,  for  Stores  Classified  by 

Years,  by  Size,  and  by  Rates  of  Stock  Turnover 321 

A.  Yearly  Amounts  of  Expenditure  for  Advertising  per 
$100  of  Total  Net  Sales  and  per  $100  of  Selling  Ex- 
pense, 1919,  1918,  and  1914 321 

X 


PAGE 

B.  Yearly    Amounts   of   Expenditure    for   Advertising    per 

$100  of  Total  Net  Sales  and  per  $100  of  Selling  Ex- 
pense, for  Stores  Classified  by  Size,  1919,  1918  and 
1914  ;....     326 

C.  Yearly    Amounts   of   Expenditure   for   Advertising    per 

$100  of  Total  Net  Sales,  for  Stores  Classified  by  Rates 

of  Stock  Turnover  and  by  Size,  1919  344 

D.  Summary 347 

3.  Yearly  Amounts  of  Expenditure  for  Advertising  in  Relation 

to  the  Amounts  of  Goods  Sold  per  Full-time  Sales-person     348 

A.  Yearly   Amounts   of   Expenditure    for   Advertising   per 

$100  of  Total  Net  Sales  and  per  $100  of  Selling  Ex- 
pense, 1919,  1918,  and  1914   348 

B.  Yearly    Amounts   of   Expenditure   for    Advertising   per 

$100  of  Total  Net  Sales  and  per  $100  of  SelUng  Ex- 
pense, for  Stores  Classified  by  Size,  1919, 1918,  and  1914     351 

C.  Yearly    Amounts   of    Expenditure    for   Advertising    per 

$100  of  Total  Net  Sales  and  per  $100  of  Selling  Ex- 
pense, for  Stores  Classified  by  Size  and  by  Size  of  City 
in  Which  Located,  1919,  1918,  and  1914 367 

D.  Summary 370 

4.  Yearly  Amounts  of  Expenditure  for  Advertising  in  Relation 

to  Expenditures  for  Rent  and  Investments  in  Fixtures, 
for  Stores  Classified  by  Years,  by  Size,  and  by  Location . .  .     372 
(1).     Yearly  Amounts  of  Expenditure  for  Advertising  in  Re- 
lation to  Expenditures  for  Rent  per  100  Square  Feet 
of  Floor  Space,  for  Stores  Classified  by  Size  of  City 
in  Which  Located 372 

A.     Summary    374 

(2).  Yearly  Amounts  of  Expenditure  for  Advertising  in  Re- 
lation to  Investments  in  Fixtures  per  $100  of  Total 
Net  Sales   374 

A.  Yearly  Amounts  of  Expenditure  for  Advertising 

per  $100  of  Total  Net  Sales  and  per  $100  of  Sell- 
ing Expense,  1919,  1918,  and  1914 374 

B.  Yearly  Amounts  of  Expenditure  for  Advertising 

per  $100  of  Total  Net  Sales  and  per  $100  of  Sell- 
ing Expense,  for  Stores  Classified  by  Size,  1919, 
1918,  and  1914   377 

C.  Summary 385 

VI.   OTHER  SELLING  EXPENSE 392 

1.     Yearly  Amounts  of  Other  Selling  Expense,  for  Stores  Classi- 
fied by  Years,  by  Size,  and  by  Location 392 

xi 


PAGE 

A.  Yearly  Amounts  of  Other  Selling  Expense  per  $100  of 

Total  Net  Sales  and  per  $100  of  Total  Selling  Expense, 
1919,  1918,  and  1914 393 

B.  Yearly  Amounts  of  Other  Selling  Expense  per  $100  of 

Total  Net  Sales  and  per  $100  of  Total  Selling  Expense, 

for  Stores  in  1919,  1918,  and  1914,  Classified  by  Size. .     393 

C.  Yearly  Amounts  of  Other  Selling  Expense  per  $100  of 

Total  Net  Sales  and  per  $100  of  Total  Selling  Expense, 
for  Stores  in  1919,  1918,  and  1914,  Classified  by  Size 
of  City  in  Which  Located 393 

D.  Yearly  Amounts  of  Other  Selling  Expense  per  $100  of 

Total  Net  Sales  and  per  $100  of  Total  Selling  Expense, 
for  Stores  Classified  by  Size  and  by  Size  of  City  in 
Which  Located,  1919,  1918,  and  1914,  Combined 394 

E.  Summary  396 

2.  Yearly  Amounts  of  Other  Selling  Expense  per  $100  of  Total 

Net  Sales  and  per  $100  of  Total  Selling  Expense,  for 
Stores  Classified  by  Amounts  of  Inventory  per  $100  of 
Total  Net  Sales,  1919,  1918,  and  1914 397 

3.  Yearly  Amounts  of  Other  Selling  Expense  per  $100  of  Total 

Net  Sales  and  per  $100  of  Total  Selling  Expense,  for 
Stores  Classified  by  Amounts  of  Sales  per  Full-time  Sales- 
person, 1919,  1918,  and  1914 398 

4.  Yearly  Amounts  of  Other  Selling  Expense  per  $100  of  Total 

Net  Sales  and  per  $100  of  Total  Selling  Expense,  for 
Stores  Classified  by  Amounts  Invested  in  Fixtures  per 
$100  of  Total  Net  Sales,  1919,  1918,  and  1914 400 

YII.  RATIOS  OP  OPERATION  FOR  STORES  CLASSIFIED  BY  RELATIVE  RATES  OF  NET 

PROFIT  PER  $100  OF  TOTAL  NET  SALES,  1919 402 

VIII.  CONCLUSION  406 

IX.  Index  409 


Xll 


I.     INTRODUCTION 


The  Bureau  of  Business  Research 
secured  the  data  for  this  study  from 
the  books  of  the  members  of  the  Na- 
tional Association  of  Retail  Clothiers 
by  means  of  questionnaires. 

After  completing  its  study  of  Costs, 
Merchandising  Practices,  Advertising 
and  Sales  in  the  Retail  Distribution 
of  Clothing,  the  Bureau  felt  that  it 
would  be  unfortunate  if  the  material 
on  selling  expense  and  expense  ratios 
were  left  in  its  files  unanalyzed.  Ac- 
cordingly, after  consulting  with  the 
trade  as  to  the  conditions  which  seem 
to  determine  the  amounts  of  selling  ex- 
pense under  different  conditions  of 
store  operation,  certain  tentative 
hypotheses  were  set  up  for  the  pur- 
pose of  determining  numerically  the 
amounts  of  selling  expense  for  stores 
under  the  conditions  established,  and 
of  discovering,  if  possible,  means  by 
which  they  might  be  reduced.  The 
hypotheses  which  proved  to  be  of  no 
significance  were  abandoned.  The 
others  have  been  fully  tested  out,  and 
it  is  these  with  which  the  volume 
deals. 

The  plan  of  the  study  is  as  fol- 
lows: It  includes  an  analysis,  first, 
of  total  selling  expense  in  relation  to 
sales  and  to  total  operating  expense ; 
second,  of  the  amounts  of  wages  and 
salaries  in  relation  to  sales  and  to 
selling  expense ;  third,  of  the  amounts 
spent  for  advertising  in  relation  to 
sales  and  to  selling  expense;  fourth, 
of  other  selling  expense  in  relation  to 
sales  and  to  total  selling  expense; 
fifth,  of  ratios  of  store  operation  for 


stores  classified  according  to  the  rela- 
tive rates  of  profits  per  $100  of  net 
sales  for  the  year  1919. 

In  each  of  these  major  sections, 
with  the  exception  of  the  part  relat- 
ing to  profits,  an  analysis  is  made  of 
data  for  stores  from  year  to  year; 
for  stores  classified  according  to  the 
amounts  of  stock  carried,  as  indi- 
cated by  the  amounts  of  inventory 
or  average  stock  in  relation  to  sales; 
for  stores  classified  according  to  the 
amounts  sold  per  full-time  sales-per- 
son and  to  the  methods  by  which 
salesmen  were  paid  in  1919 ;  for  stores 
classified  according  to  the  rental  pay- 
ments per  100  square  feet  of  floor 
space,  and  the  amounts  invested  in 
fixtures  in  relation  to  sales  and  to 
square  feet  of  floor  space ;  and,  finally, 
for  stores  classified  according  to  the 
amounts  spent  for  advertising  in  re- 
lation to  sales.  The  Table  of  Con- 
tents outlines  more  fully  the  plan  of 
the  entire  discussion. 

In  order  accurately  to  measure  the 
amounts  of  selling  expense  and  of  its 
components,  two  types  of  units  are 
used :  First,  those  in  which  the  dif- 
ferent elements  of  expense  are  ex- 
pressed in  terms  of  sales,  of  total  ex- 
pense, or  of  selling  expense,  as  the 
case  may  be,  and  second,  those  in 
which  conditions  other  than  sales, 
selling  expense,  or  total  expense  are 
reduced  to  a  common  basis.  These 
measures,  as  they  are  used  in  the  text 
discussion  and  as  computed,  are 
shown  in  the  Summary.  The  pur- 
pose  of   expressing   the   amounts   in 


various  forms  is  to  reduce,  as  nearly 
as  possible,  the  different  conditions 
of  store  operation  to  a  unit  basis. 

It  has  not  been  thought  necessary, 
in  view  of  the  use  of  simple  and  com- 
posite units,  to  print  the  frequencies 
with  which  the  different  amounts  of 
expense  occur.  The  classification  is 
detailed  and  the  units  of  comparison 
are  adjusted  so  as  to  make  this  largely, 
if  not  wholly,  unnecessary.  ^Moreover, 
to  have  printed  the  frequencies  would 
have  unduly  extended  the  treatment. 

The  analj'sis  has  been  made  with 
two  points  of  view  in  mind :  First,  to 
determine  standards  or  norms  of  ex- 
pense distribution  and  second,  to 
establish  the  conditions  controlling 
the  amounts  of  expense  and  to  meas- 
ure the  extent  to  which  they  may  be 
reduced. 


The  analysis  is  necessarily  detailed, 
but   no   excuse   needs  to   be   offered 
for  this  in  view  of  the  purpose  which 
the  Bureau,  had  in  making  the  study. 
The    features    which    distinguish    "■■ 
from  those  in  similar  fields  are 
number    of    instances    included 
scope    of    the    treatment,    ar 
method     follow^         The    stud^ 
undertaken       seriously,       wi 
thought  other  than  of  subj 
a  scientific  analysis  the  data 
and  of  presenting  +he  facts  ^^ 
ner  most  helpful  to  those  wh 
terested  in  this  field  of  dist 
It  is  believed  that  the  volume 
information   on   the   basis 
merchants  may  control  their 
tions,  test  the  reasonableness  .^ 
expenses,  and  thereby  actual^ 
them. 


nf:     :T 


JI.     SUMMARY 


It  is  difficult  to  summarize  a  study 

of  this  character  within  brief  com- 

- '     The   retail   stores   which   are 

ied  differ  in  size  and  location,  in 

Viounts  of  their  expenses,  and  in 

'^portant  respects.    In  order  to 

'^ct^unt  of  these-*  differences,  the 

'^'on    and    analysis    are    neces- 

Yailed  and,  "in  some  instances, 

'  ^^pes  of  fa  '^s  have  been  deter- 

'    First,    the    actual    expense 

Jr  standards  for  stores  under 

^conditions  of  operation,  and 

,ii^e  tendencies  for  the  amounts 

3ase  or  decrease  from  year  to 

-'Uith  the  size  and  location  of 

'''S,  and  with  varying  condi- 

operation.     Simply  to  have 

ed  the  amounts  of  expense 

ores  as  classified  would  have 

an  extensive  summary  and 

e  resulted  in  useless  dupli- 

4oreover,  to  have  specified 

pense  tendencies  would  have 

ed  more  space  than  could  be 

1   to   this    phase   of   the   study. 

'ingly,  all  that  is  attempted  in 

jmary  is  to  indicate  the  more 

ant    amounts    of    expenditure 

o  enumerate  in  a  general  way  a 

of  the  expense  tendencies  which 

.   •'■e   been    determined.     While    the 

umary  is  complete  within  itself,  it 

•it  not  to  be  considered  as  a  sub- 

te    for   the    detailed   discussion. 

^         3  use  of  the  Index,  those  who  are 

^  ■  sted  may  readily  turn   to   the 

..ts    of    expenditure    for    stores 

ified  in  different  ways  and,  by 


following  the  text  in  connection  with 
the  tables,  determine  the  limitations 
and  conditions  which  govern  the  ex- 
pense tendencies. 

1. — UNITS    OF    MEASUREMENT    USED    IN 
THE  TABLE  AND  TEXT. 

In  order  accurately  to  express  the 
amounts  of  expenditure  for  selling 
expense  and  its  components  a  variety 
of  units  has  been  used.  These  units 
are  set  out  in  the  table  on  page  4 
under  two  headings:  First,  in  the 
form  of  statements,  as  used  in  the 
text  and  tables,  and  second,  as  for- 
mulae showing  the  method  by  which 
they  are  computed.  The  common 
bases  of  comparison  are  two:  total 
net  sales  and  selling  expense.  With 
these,  however,  are  combined  certain 
other  measures,  described  in  the  table, 
the  purpose  being  to  reduce  to  a  unit 
basis  different  conditions  of  opera- 
tion. To  illustrate:  Total  selling  ex- 
pense and  its  components  are  ex- 
pressed in  terms  of  $100  total  net 
sales.  This  is  equivalent,  of  course, 
to  expressing  them  as  percentages  of 
sales.  In  order,  however,  to  provide 
for  the  conditions  under  which  sales 
are  made,  a  more  complex  measure  is 
used  which  will  reduce  the  sales  to  a 
unit  basis  in  terms  of  the  amount  sold 
per  sales-person.  Expressed  in  this 
form,  the  unit  of  expense  becomes : 
Selling  expense  per  $100  total  net 
sales  per  $1,000  sold  per  full-time 
sales-person.  In  this  manner  only  is 
it  possible  to  reduce  to  a  uniform 


basis  stores  of  different  size  with  dif- 
ferent numbers  of  sales-people  and 
with  various  amounts  sold  per  person. 


If  merchants  will  study  the  ex- 
pense ratios  which  have  been  de- 
veloped and  compare  them  with  sim- 


of  MAssurenent 


—  S  IVFLE       UHITS- 


Sallina  Expflnee  per  $100  of  Total      _ 
Hot   S»IeB 


niscia  oo'») 


tagoB  ft  SalarlM,  Advertising, 


We^ee  ft  &«lu>les.  Advertising*  or 
other  Selling  Expense  per  ftlOO  of 
Selling  Expense 


_        W  ft   S,    Adv.. 


CiSdn  go's) 


T£(ln  oc's) 


_        Orose  llergln 
msdn  OO's) 
=      ISE-Coet  of  lldee. 


net  Profit 


Saleo  per  tlOO  of  Advertlsljig 


TllSdn  co'e) 

Oross  UarAln— TE— Kleo* 
Cbargea-^UlBe.   Incoisa 

TlfS 

VI  k  5lln  Oo's) 

TKS 

Mv.lln  55  V) 


Sales  per  Pull*tlj3e  Sales-person       = 


— 

FtJfTndo'lT 

SE 

sq 

Pt.dn  OO'e) 

sq 

W. (in  oo's) 

Flxt.    Acct. 

Sq.   Ft. (In  OO'a) 


COMPOEITS       DNITS 


£rt)«isa(E£,  V  k  S»  or  AdT. )  per 
(100  of  Total  Met  Saloa  par 
AK>\jQt  Sold  per  $1  of  InTentory 


Balline  Expense  per  $100  of  Total 
Net  Sale I  per  Anount  Sold  per  $1 
of  Average  Inventory 

Averastt  Inventory 


£]cpsn£e(SE,    W  &  B,    or  Adv.)   per 
$100   of   Total  Het   Sales  per  Stock 
Turnover 

Stock  Turnover 


Coet  of  Kerch&ndle 


Expense («  fc  6  or  Adv.)   per  $100 
of  Selllog  Bxpenae  per  Stock 
Turnover. 


■niSCin  OO'i)      '      IBT. 


BJ5{la  66'»)    ^    Av.  Inv." 
1918   InT.-H91P   Inv. 


TNS(ln  OO'a) 
Coat  of  Mdae, 


ttcpenaetSE,   W  ft  S,    or  Adv.)   per 
$100  of  Total  net   Salea  per  51,000 
of  Sales  par  Pull-tlne  Sales- 
person 


Boiling  Ejcpenso  per  $100  of  Total 


Expense (ff  ft  S  or  Adv.)  per  $100  of 
Selling  Kxpense  per  $1»000  of  Salea  : 
per  PuU-tlJne  Sales-peraon 


-  E:tpenfle  TNE{1d  OOft'el 

-  THS(in  OO'e)  PTSP 


E3cpenBe{SE»   W  ft  S,    op  Adv.)   per 

$>100   of  Total  Met   Sales   per  Sales 
per  Sq.  Pt*  of  Floor  Space 


—  Expense _  ^         THS 

~     TKSdn  OO's)  Sq.  Ft. 


Expense (W  ft  S  or  Adv.)  per  $100  of 
Selling  Expense  per  Salee  per  Sq* 
Pt.  of  Floor  Space 


ABBRBVIATIOMS       USED 


Invcntorle 

Cost   of  Hd8e...CoBt   of  merchandise  sold 

Plxt.  Acct. •.*. Amount   Invested  in  fix* 

nSP..  .*......  .Kumber  of  fxill-tlsie 

saJes-people 
Inv Inventory  taken  at   the 

eisd  of  the   year 


06£ Other  selling  expense 

Purch Ptu'chases 

Sq«  Ft... ...Total  nxinber  of  square  feet 

of  floor  Bpace 

SE Total   celling  expense 

TE Total  operating  expense 

THS Total  net   sbIos 

Turn Number  of  tijnes  stock  is 

turned 
n  &  3 WagOB  ard  BalBrle& 


This  unit  is  used  only  as  an  illustra- 
tion. But  the  same  principles  apply 
to  all  the  units  and  a  similar  explana- 
tion justifies  their  use. 


ilar  ones  in  their  own  businesses,  they 
cannot  help  but  profit  by  the  results 
of  this  study.  An  analogy  will  serve 
to  make  the  point  plain.    If  one  were 


placed  in  a  foreign  country  with  no 
knowledge  of  the  unit  of  value,  it 
would  be  impossible  for  him  to  com- 
prehend the  prices  of  the  most  com- 
mon articles  of  consumption  without 
first  expressing  them  in  terms  of  his 
own  price-unit  and  then  converting 
them  into  the  price-unit  of  the  for- 
eign country.  That  is,  some  standard 
must  be  used.  Until  recently,  retail 
establishments  have  had  no  standards 
by  which  they  could  measure  their 
own  operating  expenses  and  their 
merchandising  practices.  One  pur- 
pose of  this  volume  in  the  field  of  sell- 
ing expense  is  to  supply  such  stand- 
ards. 


I. AMOUNTS  OF  SELLING  EXPENSE  AND 

ITS  COMPONENTS,  WAGES  AND  SAL- 
ARIES, ADVERTISING,  AND  OTHER 
SELLING  EXPENSE,  FOR  STORES 
CLASSIFIED  BY  YEARS,  BY  SIZE,  AND 
BY    LOCATION. 

In  the  following  summary  of  sell- 
ing expense  and  its  components,  the 
amounts  are  expressed  in  terms  of 
sales,  total  expense,  and  selling  ex- 
pense, use  being  made  of  the  simple 
and  complex  units  which  are  de- 
scribed above.  The  tables  and  charts 
refer  only  to  the  conditions  named 
therein.  It  is  impossible  briefly  to 
set  out  all  of  the  conditions  which 
determine  the  amounts  of  selling  ex- 


TABLE  A 


eu«ifi«a 

Total 
Hot  S«lea 

Classlflsd 
Soiling 
ficpoiuos 

Amounts  of  Clasairied  Selling  Expenses  per  $100  lof  Total  Ket  Sale* 

1919 

19ia 

1914 

(in  OOO'b) 

Actual  1 

$0  $2 

Oraphl* 
$4  $6  $3  $10  $12 

1       Graphle 
Actual  1 

$9  $3  $4  $6  $8  $10  $12  $1 

1        Oraphlo 
Actual  1 
1       $0  $2  $4  $6  $8  $10  $12  $14 

Total 

$10.44 

$10.94 

$11.48 

7.52 
2.61 
I.J5 

9.1s 

6.37 
1.S6 
0.92 



Wagea  1  Salarloa 
Advertising 

Other 

6.98 
2.22 
1.24 

7.37 
2.22 
l.SS 

6.09 

Avoraco 

m 

— 

Total 

6.77 

3- 

tJniSar  $40 

Wflgea  h.   Salarlea 

Aivertlaln^ 

Other 

4.50 
1.46 
0.81 

s.6e 

1.S3 
0.88 

7 

Total 

7.64 

».43 

6. 55 
1.65 
1.23 

11.14 

7.58 
2.23 

1.53 

- 

TIaga*  It   Salaries 

Advertising 

Other 

6.50 
1.35 
0.81 

t40  to  $S0 

■ 

^ 

Total 

10.48 

10.88 

11. S5 

- 

Wages  !i  Salaries 

Advertising 

Other 

7.18 
2.04 
1.26 

7.1a 
2.41 
1.38 

7.66 
2.96 
l.SS 

|8o  to  tieo 

■■ 

I" 

Total 

U.44 

12. sa 

13.93 

Wagea  h.   Salaries 

Advertising 

Other 

7.40 
S.6S 
1.S9 

8.4« 
2.59 

1.S5 

8. 48 
5.62 

i.es 

|180  &  OTOP 

— 

— 

— 

pense  and  its  components,  and  the 
reader  is  urged  not  to  be  contented 
with  reading  only  the  Summary,  but 
to  consult  the  detailed  treatment 
under  the  respective  headings. 

In  the  body  of  the  text,  different 
groups  of  stores  are  used,  the  pur- 
pose being  to  utilize  all  the  informa- 
tion which  is  available  for  the  com- 
bined and  the  individual  years.  In 
the  Summary,  however,  in  most 
cases,  the  tables  show  data  for  the 
three  years  1919,  1918,  and  1914, 
combined.  In  some  instances  it  is 
possible  to  use  but  one  year  and  in 
such  cases  both  the  tables  and  the  dis- 
cussion indicate  this  fact. 

In  the  present  section  and  in  Tables 
A,  B,  and  C,  the  amounts  of  selling 
expense  are  expressed  in  terms  of 
sales.  Subsequent  discussion  relates 
these  amounts  to  total  and  to  selling 
expense. 

A. — Amounts  of  Selling  Expenses  per 
$100  Total  Net  Sales,  for  Stores 
Classified  hy  Size  and  hy  Loca- 
tion. 

The  analysis  of  selling  expense  and 
its  components  is  based  upon  the 
records  of  154  stores  for  the  years 
1919,  1918,  and  1914.  In  1914  selling 
expense  constituted  $11.48  per  $100 
total  net  sales.  In  1918  it  was  $10.94 ; 
in  1919,  $10.44.  In  1914,  $7.52  of 
the  $11.48  was  spent  for  wages  and 
salaries,  $2.61  for  advertising,  and 
$1.35  for  other  selling  expenses.  In 
1918  these  amounts  were  $7.37,  $2.22, 
and  $1.35.  In  1919  they  were,  re- 
spectively, $6.98,  $2.22,  and  $1.24. 
For   the   combined   years,   out   of   a 


total  selling  expense  of  $10.82,  $7.22 
went  to  wages  and  salaries  paid  to 
salesmen,  $2.30  to  advertising,  and 
$1.30  to  other  selling  expenses.  Table 
A  shows  the  amounts  of  total  selling 
expense  and  its  components  for  stores 
classified  by  size,  for  the  years  1919, 
1918,  and  1914. 

Table  A  shows  that  the  amounts  of 
selling  expense  and  of  its  components 
in  terms  of  sales  in  each  of  the  years 
increase  as  the  stores  increase  in  size. 
Moreover,  this  condition  obtains  for 
the  combined  years  as  is  shown  in 
Table  B.  In  these  years,  total  selling 
expense  for  the  stores  with  annual 
sales  under  $40,000  is  $8.49.  For 
those  with  sales  of  $40,000  to  $80,000, 
it  is  $9.34;  for  those  with  sales  of 
$80,000  to  $180,000,  it  is  $10.89 ;  and 
for  those  with  sales  of  $180,000  and 
over,  $12.05.  The  amounts  of  total 
selling  expense  and  its  constituent 
parts  are  shown  in  Table  B. 

For  the  combined  years  the  total 
selling  expense  per  $100  total  net 
sales  is  larger  for  the  stores  in  the 
large  cities — those  with  population  of 
40,000  and  over — than  for  those  in 
the  small  cities — those  with  popula- 
tion under  40,000.  The  average  for 
the  stores  in  the  first  group  is  $12.17 
and  for  those  in  the  second  group, 
$9.40.  Moreover,  for  all  stores,  each 
element  of  expense  is  larger  for  the 
stores  in  the  large,  than  for  those  in 
the  small  cities.  When  the  stores  are 
classified  b}'  size,  total  selling  expense 
for  each  group  is  larger  for  the  stores 
in  the  large  than  for  those  in  the 
small  cities.  This  condition  generally 
obtains  for  each  element  of  expense. 


TABLE  B 


Cla30irie<! 
Selling 
Expenees 

— ^       -     ■        — —      " 

AwnmtB  of  Claaeined  bpenaea  per  JlOO  of  Total  Vet  Selea 

Classiriod 

Total 
Ret   SaloB 

Total   (Average) 

ClUea  nth  Population 
unilor  40,000 

Cltlea  with  PopalaAloo  of 
40,000  ft  over 

<lll  ooo'o) 

1                       Oraphlo                      1                     1                  Oraublo 
Actual       1                                                       1    Aetiaei     | 

to     »2     ^4     (6     $8  $10  112  $14                   $0     «2     $4     tS     $9  llO  »W 

1                   Oraphla 
Actual       1 

l9   »;««(«   la  tio  »i2  IM 

Tot>l 

tlO.82 

$9.40 

6.6B 
1.7B 
0.8S 

8.M 

5.73 
l.M 
O.SZ 

Anngs 

Wegee  k  Salaries 

Advertising 

other 

T.22 
2.50 
l.SO 

7 

7.72 

S.80 
1.65 

10.53 

— 

Total 

e.4s 

Ikidar  $40 

Wegsa  k  Selariee 

Admrtlalng 

Otber 

6. SI 
1.70 
0.88 

"^^"" 

8.13 
1.77 
0.49 

■ 

*ot«l 

9.94 

e.76 
e.3o 

1.60 
0.86 

ll.iS 

- 

- 

•40  to  $30 

■agea  k  Salarlta 

Aa»ertlBlng 

Other 

6. SI 
1.72 
1.11 

7.03 

e.24 
i.se 

7 

Total 

io.e» 

lO.U 

12.32 

7.36 
2.81 
2.05 

tso  to  tieo 

T,'aEoe  ft  £ftlarlf8 

AdverllBlng 

Other 

7.2« 
S.ti 
1.90 

- 

7.U 

l.ae 

1.02 

7 

— 

Tctr.l 

12.0S 

10.47 

7.84 
1.68 
0.8S 

ilB'j  &  ov-,r 

nbgoB  ft  Sclarloa 

Ad»ertlBlng 

Other 

7.84 
8.71 
l.SO 

- 

- 

7.84 
2.85 
1.S7 

— 

The  amounts  for  the  stores  in  the 
two  city-groups  are  given  in  Table  B. 
In  Table  C  the  amounts  of  selling 
expense  and  of  its  components  for 
stores  classified  by  size  are  shown  per 
$100  total  net  sales  expressed  in  dif- 
ferent units.  The  table  gives  the 
number  of  stores  to  which  the  figures 
apply,  the  years  which  are  involved, 
and  the  table  numbers  in  the  text  in 
which  the  detail,  under  more  elab- 
orate classifications,  may  be  found.  It 
is  imnecessary  to  indicate  the 
amounts,  although  for  summary  pur- 
poses it  may  be  well  to  indicate  their 
direction  of  change.  Section  I  of  the 
table  shows  that  the  amounts  of  sell- 
ing expense,  of  wages  and  salaries,  of 


advertising,  and  of  other  selling  ex- 
pense increase  as  the  stores  increase  in 
size.  To  this  general  rule  there  are 
no  exceptions. 

B. — Amounts  of  Selling  Expenses  per 
$100  Total  Net  Sales  per  Stock 
Turnover,  for  Stores  Classified 
by  Size. 

Section  II  of  Table  C  shows  the 
amounts  of  selling  expense,  wages  and 
salaries,  and  advertising  per  $100 
total  net  sales  per  stock  turnover.  As 
the  stores  increase  in  size  these 
amounts  increase.  The  result  of  ex- 
pressing them  on  a  per-turn  basis  is 
to  modify  the  rate  at  which  the  ex- 
penses increase  for  stores  of  increas- 


TABLE  C 


Aaoiuti  ir  Cluitriod  S«Ulef  IxpctiM 

I 

II 

III 

IV 

V 

CUsslflod 

Total 
(•t   Salol 

(Is  OOO'l) 

*tr  tlOO  of  Total  lot  Salo* 

rar  lloo  of  Total  lat 

Sales  per  Stock 

TumoTar 

far  $100  of  Total  Hat 
Sal^s   par  Aabunt   Sold 
per  $1  of   InTectorj 

?ar  ♦lOO  of  Total  lat 

Sa'.ei  per  ll.OOO  of 

Sales   per  Pull-tiaa 

Salea.paraoo 

Per  tlOO  or  Total  I*t 

Ealaa  fr  SilM 

yar  E<i.   Ft. 

Total 

Salilns 

■a««l  k 
Salarlea 

tl>lii4 

otbsr 

Tota 
SaUlcg 

fitpenea 

Wajal  t 

Salarlae 

IdTor- 

tliUig 

Total 
Sailing 

lagai  k 

Salarlaa 

tlalD« 

Total 
Ballliic 
Bxpenao 

Wagaa  t 

Salaries 

AdTer- 

tlsls( 

Total 
Sailing 
bpana 

Wage*  h 
Salaries 

Averts 

tio.oz 

r.M 

»2.S0 

tl.so 

»4.C2 

13.03 

11.02 

t4.oe 

♦2.74 

♦0.87 

♦0.67 

♦0.4S 

♦0.14 

♦0.39 

♦0.2« 

»«  to    «ao 
*ao  to  tiso 
$U0  i  o<«r 

8.49 
9.M 

10.69 
U.OS 

S.91 

6.gi 

7.M 

1.70 
1.72 

a.M 

t.n 

0.S8 
lAl 
1.90 
1.90 

4.00 
4.14 
6.9S 
4.0« 

Z.S4 

«.9e 

3.61 
2.93 

0.78 
0.79 
1.09 
1.00 

4.74 
4.26 
4.39 
3.38 

3.31 
3.00 
8.90 
2.21 

0.»4 
0.77 
0.94 
0.76 

0.82 
0.69 
0.69 
0.60 

0.98 
0.48 
0.49 
0.39 

0.19 
0.12 
0.14 
O.IS 

0.49 
0.3S 
0.42 
0.33 

0.31 
0.27 
0.28 
0.21 

■iKSMr  or 
Btcrt-TWra 

4 
I  7". 

4<a 

US 
9  rr: 
4«t 

su 

S  p-.. 
4S2 

3  jr.. 

4«2 

39 

1919 

es2 

144 
1919 

249 

1919 
282 

26 
3  rr*. 

447 

149 
Syr.. 

447 

239 

9  jra. 

447 

49 
a  jra. 

438 

162 
9  m. 
438 

299 

3  rn. 
438 

77 
1919 
303 

.      .J 

184 
1919 

303 

ing  size.  The  data  refer  to  tfie  year 
1919  alone  and  include  the  records  of 
282  stores.  Generally  speaking,  the 
larger  the  store,  the  faster  is  the  rate 
at  which  stock  is  turned.  Accord- 
ingly, when  the  amounts  for  stores  of 
a  given  size  are  divided  by  the  stock 
turnover  rates,  the  general  effect  is 
to  modify  or  to  reduce  the  high  sell- 
ing expenses  associated  with  large 
stores. 

C. — Amounts  of  Sellitig  Expenses  per 
$100  Total  Net  Sales  for  the 
Amount  Sold  per  $1  of  Invent 
tory,    for    Stares    Classified    by 

Size. 

Section  III  of  Table  C  shows  for 
the  combined  years  the  amounts  of 
selling  expense,  of  wages  and  salaries, 
and  of  advertising  per  $100  of  sales 
for  the  amount  sold  for  each  $1  of 
inventory.  The  details  are  supplied 
for  149  stores,  classified  by  size.  As 
the  stores  increase  in  size,  each  ele- 
ment, as  well  as  the  total  selling  ex- 
pense,    decreases.       This     condition 


holds  for  each  of  the  years  also.  The 
larger  the  store,  generally  speaking, 
the  smaller  the  inventory  per  $100  of 
sales.  Accordingly,  when  the  different 
expense  items  are  reduced  to  a  basis 
of  sales  for  each  dollar  of  inventory, 
the  amounts  decrease. 

D. — Amounts  of  Selling  Expenses  per 
$100  of  Total  Net  Sales  per 
$1,000  Sold  per  FuU-Time  Sales- 
Person,  for  Stores  Classified  by 
Size. 

Section  IV  of  Table  C  shows  for  the 
combined  years  1914,  1918,  and  1919, 
the  amounts  of  selling  expense  and 
of  its  components  per  $100  of  sales 
for  each  $1,000  sold  per  full-time 
sales-person.  The  records  of  146 
stores  classified  by  size  are  included 
for  this  period.  As  the  stores  in- 
crease in  size,  each  expense  and  the 
total  decrease.  This  condition  holds 
also  for  each  of  the  years.  IMoreover, 
from  year  to  year,  from  1914  to  1918 
to  1919,  each  expense  element  when 
measured  in  this  unit  decreased. 


E. — Amoimts  of  Selling  Expenses  per 
$100  Total  Net  Sales  for  the 
Amount  Sold  per  Square  Foot  of 
Floor  Space,  for  Stores  Classified 
by  Size. 

In  Table  C,  Section  V,  the  amounts 
of  total  selling  expense  and  wages  and 
salaries  are  shown  for  1919,  when  ex- 
pressed per  $100  total  net  sales  for  the 
amount  sold  per  square  foot  of  floor 
space.  The  records  of  303  stores, 
classified  by  size,  are  used  to  deter- 
mine these  averages.     As  the  stores 


increase  in  size,  the  amounts  show  no 
regular  tendency  to  increase  or  to 
decrease. 

F. — Amounts  of  Selling  Expense  per 
$100  of  Total  Expense  far  Stores 
Classified  by  Years,  by  Size,  and 
by  Location. 

Chart  I  shows  graphically  for  the 
combined  and  the  individual  years, 
1914,  1918,  and  1919,  the  relations 
which  selling  expense  bears  to  total 
operating    expense.    For    the    years 


CHART  I 

GRAPHIC   REPRESENTATION  OF  THE  AMOUNTS   WHICH   SELLING   AND  OTHER  EXPENSE 
FOR  154  STORES  CONSTITUTE  OF  EACH  $100  OF  TOTAL  OPERATING 
EXPENSE,   1919,   1918,  AND  1914 
Ysara 


•0 


«10 


120 


tzo 


140 

L_ 


150 


160 


♦  70 


$80 


$90 

L_ 


1100 
1 


Total 
(Average) 


^^^^^^^^^■^^w^^^^^^^^H 

49.91 

1919 


^^^^^^^^^^^^^^^^^^^^1 

48.94 

1918 


1914 


$100 


Selling  Sspsnas 


Other  Expense 


combined,  out  of  every  $100  of  total 
operating  expense,  selling  expense 
constitutes  $50.09.  In  1914  the  cor- 
responding amount  was  $48.86 ;  in 
1918,  $49.63;  and  in  1919,  $51.06. 
That  is,  from  year  to  3'ear,  selling 
expense  in  relation  to  total  operating 
expense  increas?d. 

Chart    II    shows    graphically    the 
amounts  of  selling  expense  per  $100 


of  total  expense  for  stores  classified 
by  size.  The  average  amount  for  the 
stores  with  sales  under  $40,000  is 
$41.13 ;  for  those  with  sales  of  $40,000 
to  $80,000,  it  is  $46.10 ;  for  those  with 
sales  of  $80,000  to  $180,000,  $51.49; 
and  for  those  with  sales  of  $180,000 
and  over,  $52.67.  That  is,  the 
amounts  increase  as  the  stores  in- 
crease in  size. 


CHART  II 

GRAPHIC   REPRESENTATION  OP  THE  AMOUNTS   WHICH   SELLING   AND  OTHER  EXPENSE 
CONSTITUTE  OF  EACH  $100  OF  TOTAL  OPERATING  EXPENSE,  FOR  STORES 
OP   DIFFERENT   SIZE,    1919,    1918,   AND   1914,    COMBINED 
Classiried 

TotsO. 
Bet  Sales 
(In  OOO'a) 


to 


♦10 


$20 


ISO 


UO 


160 


160 


♦70 


♦80 


|eo 


♦100 


Total 
(Average ) 


^^^^^^^^^^^^^^^^^^^^^^H 

49.91 

Under  ^0 


il.lS^^^^^m  S8.87 


$40  to  $80 


$80  to  ilBO 


[51.491 


48.61 


|180  *  over 


^^^^^^^^^^^QzTgt^^^^^^^^^^^I 

47.SS 

Dellir.g  Exrenoe 


Other  Expense 


10 


CHAET  111 

GRAPHIC   REPRESENTATION   OF   THE  AMOUNTS   WHICH   SELLING   AND  OTHER  EXPENSE 

CONSTITUTE  OF  EACH  $100  OF  TOTAL  OPERATING  EXPENSE,   FOR  STORES  OP 

DIFFERENT  SIZE  AND  LOCATION,  1919,  1918,  AND  1914,  COMBINED 

ClBselfled  Slao 

Totsil  of 

Bet  Sales  City 

(In  OOO'b)  (Is  OOO'b) 

to  tlO  $20  {30  |40  ISO  teo  (70  tso  tso  llOO 


Total 
(Average ) 


^^^^^^^^^^^^^^^^^^^^^^H 

61.02 

,  40  k  OTCl' 


Under  |40 


Ibder  40 


4p  ft  over 


$40  to  teo 


Ttader  40 


Hiil^^^^^^^^H 


'  Qidsp  40 


^0  to  $180  < 


'  Under  40 


tl80  &  over  < 


63.39^^^^^^^^^^^  4£.61 


$10  *20  HO  MO  tso  UO  fO  {-80  t90  tlOQ 


■* 


Solllnc  acrens* 


other  Erpeoee 


11 


Chart  III  shows  graphically,  for 
the  three  years  1914,  1918,  and  1919, 
combined,  the  amounts  of  selling  ex- 
pense per  $100  of  total  operating  ex- 
pense for  15-4  stores,  classilied  by  size 
and  further  by  the  size  of  the  city  in 
"vvhich  located.  For  stores  within  a 
given  size-group,  the  amounts  of 
selling  expense  per  $100  of  total  oper- 
ating expense,  in  every  ease  but  one, 
are  larger  for  those  in  small,  than  for 
those  in  large  cities.  For  all  the 
stores,  irrespective  of  size,  the  average 
amount  is  larger  for  the  stores  in  the 
large  than  for  those  in  the  small 
cities.  This  seeming  contradiction  is 
due  to  the  fact  that  selling  expense 
in  relation  to  total  operating  expense 
is  higher  in  large  than  in  small  stores 
and  that  in  the  groups  used,  there  is 
relatively  a  larger  percentage  of  large 
stores  in  the  large  than  in  the  small 
cities. 

Table    D,    Section    I,    shows    the 

amounts  of  selling  expense  per  $100 

total      operating      expense.       These 

amounts  for  the   154  stores  for  the 

TABLE  D 


AnountB  of  Total  Selling  Expense 

Cltaairiod 

I 

II 

III 

Vet  Salea 
(in  OOO'i) 

Far  tlOO  of 
Total  Bxpenae 

Tar  4100  of 

Total  Expense 

par  Stock 

Turnover 

Per  }100  of 

Total  Expense 

per  $1,000  of 

Sales  per 

Pull-tUae 

Sales -person 

Average 

960.09 

$22.24 

♦3.U 

Onder  $40 
$40  to     tSO 
|eo  to  %1B0 

tlSO  at  over 

41.13 

46.10 
S1.4S 
62.67 

25.27 
25.53 
27.19 
is".  80 

4.00 
5.44 
3.07 
2.63 

Table  SiBiber 

Yewe 

ItaOwr  or 
8t<ir*-r«*r« 

S  yra. 
««2 

67 
1919 

289 

59 
5  yra. 

4se 

three  years  combined  increase  as 
stores  increase  in  size.  This  condition 
holds  also  for  each  of  the  years  1914, 
1918,  and  1919.  From  year  to  year, 
the  amounts  of  selling  expense  per 
$100  total  operating  expense  increased 
from  $48.86  to  $51.06,  as  shown  in 
Chart  I.  The  average  amount  for  the 
three  years  is  $50.09. 

G. — Amounts  of  Selling  Expense  per 
$100  Total  Expense  per  Stock 
Turnover,  for  Stores  Classified 
by  Size. 

Section  II  of  Table  D  shows  for 
269  stores  for  1919,  classified  by  size, 
the  average  amounts  of  selling  ex- 
pense per  $100  total  operating  ex- 
pense per  stock  turnover.  As  the 
stores  increase  in  size,  these  amounts 
increase  for  stores  with  sales  less  than 
$180,000.  For  the  group  of  stores 
with  sales  of  $180,000  and  over,  the 
average  is  considerably  smaller  than 
for  any  of  the  other  groups.  This  is 
due  primarily  to  the  greater  rapidity 
with  which  these  stores  in  this  year 
turned  their  stock. 

H. — Amounts  of  Selling  Expense  per 
$100  Total  Expense  per  $1,000 
Sold  for  Each  Full-Time  Sales- 
Person,  for  Stores  Classified  by 

Size. 

Section  III  of  Table  D  shows  the 
amounts  of  selling  expense  per  $100 
total  expense,  expressed  in  terms  of 
$1,000  worth  of  goods  sold  for  a  full- 
time  sales-person.  The  records  of  146 
stores  for  the  combined  years,  clas- 
sified by  size,  are  available  for  study 


12 


from  this  point  of  view.  As  the  stores 
increase  in  size,  the  expenditures  ex- 
pressed in  this  unit  decrease  from  a 
maximum  of  $4.00  to  a  minimum  of 
$2.63.  Similar  decreases  hold  for  each 
of  the  three  years. 

I. — Amounts  of  Wages  and  Salaries, 
of  Advertising,  and  of  Other 
Selling  Expense  per  $100  of 
Total  Selling  Expense,  for 
Stores  Classified  by  Years,  by 
Size,  and  by  Locatio7i. 

Chart  IV  shows  graphically  for  the 
combined   and   the   individual   years 


1914,  1918,  and  1919,  the  relations 
which  wages  and  salaries,  advertising, 
and  other  selling  expense  bear  to 
total  selling  expense.  For  the  com- 
bined years,  essentially  two-thirds  of 
selling  expense  is  attributable  to 
wages  and  salaries  paid  to  salesmen. 
Moreover,  this  proportion  remains 
essentially  constant  for  each  of  the 
different  years.  Approximately  one- 
fifth  of  all  the  selling  expenses  goes 
for  advertising.     Between  1914  and 

1918,  the  proportion  for  this  purpose 
decreased    and    between    1918     and 

1919,  increased.    For  the   combined 


CHART  IV 

GRAPHIC   REPRESENTATION  OF   THE  AMOUNTS   WHICH   WAGES  AND   SALARIES,   ADVER- 
TISING,   AND   OTHER   SELLING   EXPENSE   FOR    154   STORES   CONSTITUTE    OF 
EACH  $100  OF  TOTAL  SELLING  EXPENSE,  1919,  1918,  AND  1914 
Tears 


*0 


*10 


120 


ISO 


140 


160 


$60 


»70 


$80 


t90 


tlCO 


lotaX 
(Average ) 


^M^^^^^^^^^^'^^^^^^^^^^^^B 

:;; 

l\ 

--+ 

— h 

12.06 

^^^^^^^^^^^^^^■66^69^^^^^^^^^^^^^^B 

::: 

21.25 

m 

i 

i 

1919 


^■■■■^■■^^^■■■tart^BArillHMta^^B^MH^B^ri^^^^^^^^^B 

iiimii 

T 

^^^^^^^^^^^^^^^^^^^^^^IH^^^^^^^^^^^^^^^^^^^^^B 

mm 

+ 

^^^^^^^^^^^^^^H^^eo^^^^^^^^^^^^^^H 

: 21.26 

m 

1 

s 

11.94 

1918 


i:i4 


*0 *10  $20 »^0  up ♦60  S60 tTO  $80  ^90  $ipo 


ITsges  &  Salaries 


AdTsrtlalng 


Other  Selling 

Expense 


13 


years,  other  selling  expenses  roughly 
constitute  one-eighth  of  the  total. 

Chart  V  shows  graphically  for  154 
stores  classified  by  size,  for  the  com- 
bined years  1914,  1918,  and  1919,  the 
relative  proportion  of  total  selling  ex- 
pense attributable  to  wages  and  sal- 
aries, to  advertising,  and  to  other 
selling    expense.     As   the   stores   in- 


crease in  size,  the  proportions  for 
wages  and  salaries  decrease.  The  pro- 
portions exi)ended  for  advertising 
and  for  other  selling  purposes  in- 
crease. 

Chart  VI  shows  graphically  the 
amounts  of  wages  and  salaries,  adver- 
tising, and  other  selling  expense  per 
$100  of  total  selling  expense  for  the 


CHART  V 

GRAPHIC   REPRESENTATION  OF   THE   AMOUNTS   WHICH    WAGES   AND   SALARIES,   ADVER- 
TISING, AND  OTHER  SELUNG  EXPENSE  CONSTITUTE  OF  E.\CH  $100  OF  TOTAL 
SELLING  EXPENSE,  FOR  STORES  OF  DIFFERENT  SIZE,  1919,  1918, 
AND   1914,   COMBINED 

ClsBdlfied 

Total 
Ket  Sales 
(In  OOO'b) 


Tctal 
(Average ) 


tlO 


120 


ISO 


140 


tso 


teo 


170 


•80 


•90 


♦ipo 


^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^B 

21.26 

12.06 

Under  $40 


^^^^^^^^^^^^^^^^^^^^H 

1 

^m 

::::::::::: 

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^H 

1 

±19.99 

lift 

:::::::|:: 

10.45 

^0  to  fee 


^^^^^^^^^^^^^^■dsTeT^^^^^^^^^^^^^^^^E 

mm 

;  18.56 

11.96 

|eo  to  $180 


^^^^^^^^^^^^^^^peTsT^^^^^^^^^^^^^^B 

;:;i;;: 

■I 

21.43 

m 

::: 

1 

m 

11.96 

$180  &  ever 


to  no  120  tso  $40  t50  }60  t70  t60  t90  tlOO 


Traces  ft  Seler'.eo 


Advertising 


Other  Selling 
Expense 


14 


CHART  VI 

GRAPHIC   REPRESENTATION  OF   THE   AMOUNTS   WHICH    WAGES   AND    SALARIES,    ADVER- 
TISING, AND  OTHER  SELLING  EXPENSE  CONSTITUTE  OF  EACH  $100  OF  TOTAL 
SELLING  EXPENSE,  FOR  STORES  OF  DIFFERENT  SIZE  AND  LOCATION, 
1919,    1918,   AND    1914,    COMBINED 

ClasBlflee     8lt» 

Total  of 

Nat  Sales  ,  City 

(In  OOO'b)  (in  OOO'b) 


|0      »10     «20      t30     UO 


Total 
(Average ) 


.  40  &   orer 


S50     $60      S70     tSO      t90     tlOQ 


■                                                  

I^^^^^^^^^^^^^^^^^^H^H^^HHHHi^E 

:: 

* 

'■^W^4 

■■--w^ 

IS.iiO 

|^^^^^^^^^^^^H63^41^^^^^^^^^^H 

"tr 

^^^^^^^^^^^^^^^^^^^^^^■J 

11 

u 

1  .Il!ll!!in 

It 

Ooder  $40  < 


^^^H^I^^^^^^^HesTss^^^^^H^^^^^^^B 

i  20.28f 

11.09 

Under  4C 


#40  to  $80  <; 


m 

::;!:|- 

«.34 

^^^^^^^^^^^^^^^^ITsi^^^^^^^l^^^^^^^B: 

S 

18.25 

m 

Fff 

iiHiinii- 

^^^^^^^^^^H^^^BesTeo^^^H^^^^^^^E 

;: 

I 

18.64:::: 

17.86 

'  Ibder  40 


$80  to  $180  < 


1 

^ 

PI 

9.93 

^^^^^^^^^^^^^^^V70^39^^^^^^^^^^^^^^B: 

:: 

1 

19.63 

.  40  &  ovei' 


$180  &  over  < 


.  40  &  over 


$60      ?60      t70 $80 tfO  tlcp 


fagos  t  Salnrles 


AdTBrtlsing 


Other  Selling 
Ebcpenee 


15 


TABLE  E 


Asovcta  of  Claeslfled  Selling  Er.psT^se 

Classified 

I 

II 

III 

Total 
Het  Sales 
(la  OOO'b) 

Per  $100  of  Belllne  Expense 

Per  tlCO  of  Selling 

Ej-.pen:o  per  Stock 

Turnover 

Per  (100  of  Selling  Expense 
par  (1,000  of  Sales  per 
Pull-tlrco  Sales-person 

Salaries 

Advertising 

Other 

Waces  t 
Ealnrlea 

Advertising 

Wases  k 
Snlarles 

Advertising 

ivn-age 

(66.69 

(21.25 

(12.06 

(29.80 

(10. DC 

(4.14 

(1.31 

ODder  |40 
(40  to     f80 
(S3  to  1 150 

fl£0  k  oTor 

69.56 
69.67 
66.61 
65.06 

19.99 

le.u 

21.43 
22.  5S 

10.45 

u.9a 

11.96 
12.41 

47.53 
39.96 
35.24 
23.36 

12.77 

10.16 

10.54 

9.03 

6.72 
5.24 
4.06 
3.21 

1.90 
1.36 
1.2a 
1.11 

Tabl*  >hab«r 

Xeaxi 

HuEber  of 
Store-yeari 

las 

3  yra. 
462 

216 
S  yra. 
462 

286 
5  yra. 

462 

166 
191S 

26S 

259 
1919 

269 

168 
3  yra. 

438 

261 
S  jra. 

436 

three  years,  1914,  1918,  and  1919, 
combined,  for  154  stores  classified  by 
size  and  further  by  the  size  of  the 
city  in  which  they  are  located.  The 
proportions  of  total  selling  expense 
attributable  to  wages  and  salaries  for 
all  groups  of  stores,  except  one,  when 
classified  by  size,  are  less  in  stores  in 
the  small  than  in  those  in  large  cities. 
The  proportions  of  total  selling  ex- 
pense which  are  attributable  to  adver- 
tising are  higher  for  the  stores  in 
the  large  cities  for  each  size-group 
except  one.  The  same  condition 
characterizes  the  miscellaneous  sell- 
ing expense.  For  all  of  the  stores  in 
the  small  cities,  roughly  71  per  cent, 
of  the  selling  expense  is  paid  out  in 
the  form  of  wages  and  salaries,  19  per 
cent,  in  the  form  of  advertising,  and 
10  per  cent,  as  other  selling  expense. 
In  stores  in  the  large  cities,  the  cor- 
responding percentages  are  63,  23, 
and  14. 

In  Table  E,  Section  I,  the  amounts 


of  wages  and  salaries,  advertising, 
and  other  selling  expenses  per  $100 
of  selling  expense  are  sho^vn,  for  the 
combined  years,  for  154  stores,  clas- 
sified by  size.  As  the  stores  increase 
in  size,  wages  and  salaries  decrease, 
while  advertising  and  other  selling 
expense  increase.  Moreover,  this 
condition  obtains  for  each  of  the 
years. 

J. — A'mou7its  of  Wages  and  Salaries 
and  of  Advertising  per  $100 
Selling  Expense  per  Stock  Turn- 
over,   for    Stores    Classified    hy 

Size. 

In  Section  II  of  Table  E  the 
amounts  of  wages  and  salaries  and  of 
advertising  per  $100  of  selling  ex- 
pense per  stock  turnover  for  1919  are 
shown  for  269  stores,  classified  by  size. 
The  amounts  of  both  expenses  de- 
crease as  stores  increase  in  size.  The 
direction  of  change  in  the  amounts  of 
wages  and  salaries,  when  expressed 


16 


in  this  form,  agrees  with  that  shown 
for  wages  and  salaries  when  measured 
in  terms  of  selling  expense  alone.  The 
direction  of  change  for  advertising, 
expressed  in  this  unit,  is  inverse  to 
that  shown  for  the  amounts  in  terms 
of  selling  expense  alone. 

K — Amounts  of  Wages  and  Salaries 
and  of  Advertising  per  $100  of 
Selling  Expense  per  $1,000  Sold 
per  Full-tvme  Sales-person,  far 
Stores  Classified  by  Size. 

Table    E,    Section    III,   shows   the 
amounts  of  wages  and  salaries  and  of 


three  years  holds  for  each  year  treated 
separately. 

3. — AMOUNTS  OF  SELLING  EXPENSE  AND 
ITS  COMPONENTS,  WAGES  AND  SAL- 
ARIES AND  ADVERTISING,  IN  RELA- 
TION TO  THE  AMOUNTS  OF  STOCK 
CARRIED. 

The  method  of  classifying  the 
stores,  the  expenses  of  which  are 
summarized  in  this  section,  is  accord- 
ing to  the  amounts  of  inventory 
which  they  had  per  $100  of  total  net 
sales.  In  view  of  the  fact  that  each 
of  the  elements  of  expense  is  a  func- 


TABLE  F 


Aaujonts  of  Classified  Selling  Expense 

inount  of 

loTsntory 

par  $100  of 

I 

II 

III 

Total 
Rat  Salas 

Far  $100  of  Total  Net  Sales 

Per  $100  of  Total  Bet  Sales 
per  Stock  Tamovor 

Fer  $100  of  Total  Net  Sales  per 
AjBount  Sold  per  $1  of  Inventory 

Total 
Selling 
Srponse 

Wages  k 
Salaries 

Advertising 

Total 
Selling 
Kxponee 

Wages  fe 
Salaries 

Advertising 

Total 
Sailing 
Expense 

Wages  k 

Salaries 

Advertising 

Averaga 

$9.S7 

#6.59 

$1.69 

$4.14 

$2.98 

$0.76 

$4.26 

$5.00 

$0.77 

Under  IBO 
tZO  to  $40 
(to  to  $60 
$60  k  over 

7.57 
9.21 

e.ei 

8.57 

5.10 
6.10 
6.94 
6.97 

1.22 
1.77 
1.67 
1.75 

1.59 

5.24 

\ 
5.25 

0.85 
2.24 

5.89 

0.J5 
0.67 

0.85 

1.29 
2.76 
4.81 
6.69 

0.89 
1.85 
5.47 
4.88 

0.21 
0.5S 
0.84 
1.25 

Table  Number 

Years 

Huaiber  of 
Store-years 

22 
5  7TB, 

16S 

139 

5  yrs. 
165 

252 

S  yrs. 
166 



59 
1919 

106 

144 
1919 

106 

245 
1919 

106 

26 
5  yrs. 

165 

145 

5  yrs. 
165 

856 
5  yrs. 

165 

advertising,  expressed  per  $100  of 
selling  expense  for  each  $1,000  sold 
per  full-time  sales-person,  for  stores 
classified  by  size.  That  is,  the  amounts 
are  reduced  to  a  unit  basis  of  selling 
expense  and  of  salesmen's  sales.  Ex- 
pressed in  this  form,  both  amounts 
decrease  as  stores  increase  in  size. 
The  data  refer  to  the  three  years 
1914,  1918,  and  1919,  combined.  The 
direction   of   change   shown    for   the 


tion  of  the  size  of  the  stores,  a  single 
group,  viz.,  stores  with  sales  of  $40,- 
000  to  $80,000,  is  selected  for  pur- 
poses of  summary. 

A. — Amounts  of  Selling  Expenses  per 
$100  Total  Net  Sales,  for  Stores 
Classified  by  Amounts  of  Iiv- 
vefitory  per  $100  Total  Net  Sales. 

For  a  group  of  stores  with  annual 
sales  of  $40,000  to  $80,000,  as  shown 


17 


in  Table  F,  Section  I,  the  amounts  of 
selling  expense,  of  wages  and  salaries, 
and  of  advertising,  based  upon  three 
years'  experience,  increase  as  the  in- 
ventories per  $100  total  net  sales  in- 
crease. For  other  size-groups  clas- 
sified by  inventories  in  relation  to 
sales,  the  amounts  of  total  selling  ex- 
pense for  the  combined  years  increase. 
The  amounts  of  wages  and  salaries 
and  of  advertising,  however,  are  un- 
certain as  to  direction  of  change. 
AVhen  the  stores  are  classified,  irre- 
spective of  size,  but  according  to  the 
amounts  of  inventories  in  relation  to 
their  sales,  each  element  of  expense, 
and  also  the  total,  decreases  with  in- 
creasing inventories.  Moreover,  the 
conditions  for  the  three  years  gener- 
ally hold  for  each  of  the  individual 
years. 

B. — Amounts  of  Selling  Expenses  per 
$100  Total  Net  Sales  per  Stack 
Turnover,  for  Stores  Classified 
by  Amounts  of  hiventory  per 
$100  Total  Net  Sales. 

Table  F,  Section  II,  shows  for  106 
stores,  having  sales  of  $40,000  to 
$80,000  in  1919,  the  amounts  of  sell- 
ing expense,  wages  and  salaries,  and 
advertising,  measured  in  terms  of 
$100  sales  per  stock-turnover.  The 
stores  are  classified  by  the  amounts  of 
inventory  per  $100  total  net  sales. 
As  the  inventories  increase  in  size, 
the  different  expenses  also  increase. 
That  is,  they  are  relatively  low  in  the 
stores  with  low  inventories.  This  con- 
dition also  holds  for  stores  in  other 
size-groups  and  for  all  stores,  irre- 
spective of  size. 


C. — Amounts  of  Selling  Expenses  per 
$100  Total  Net  Sales  for  the 
Amount  Sold  per  $1  of  Inven- 
tory, far  Stares  Classified  by 
AmouJits  of  Inventory  per  $100 
Total  Net  Sales. 

Table  F,  Section  III,  shows  for  a 
group  of  stores  for  the  three  years 
combined,  the  amounts  of  selling  ex- 
pense, wages  and  salaries,  and  adver- 
tising for  stores  having  sales  of  $40,- 
000  to  $80,000,  classified  by  the 
amounts  of  their  inventories  per  $100 
total  net  sales.  As  the  size  of  the  in- 
ventories expressed  in  this  form  in- 
creases, the  amounts  of  each  of  the 
expenditures  increase.  Moreover,  this 
condition  holds  for  the  stores  in  the 
other  size-groups  and  for  all  stores, 
irrespective  of  size.  It  also  holds  in 
each  of  the  different  years.  From 
year  to  year,  each  of  the  different  ele- 
ments of  expense,  expressed  in  thi^ 
form,  decreased. 

D. — Amounts  of  Selling  Expense  per 
$100  Total  Expense,  for  Stores 
Classified  by  Amounts  of  Inven- 
tory per  $100  Total  Net  Sales. 

Table  G,  Section  I,  shows  the 
amounts  of  selling  expense  per  $100 
of  total  expense  for  a  group  of  stores 
with  sales  from  $40,000  to  $80,000, 
for  the  three  years  1914,  1918,  and 
1919,  combined,  classified  by  the 
amounts  of  inventory  per  $100  total 
net  sales.  As  the  size  of  the  inven- 
tories increases,  the  amounts  of  sell- 
ing expense  decrease,  if  the  group  of 
stores  having  inventories  less  than 
$20  per  $100  total  net  sales  is  omitted. 


18 


TABLE  G 


Amounts  of  Total 
Selling  Expense 

Amounts  of  Classified  Selling  Expense 

Amount  of 
Inventory 

I 

II 

III 

per  $100  of 

Total 

Net  Sales 

Per  $100  of 

Total 
Expense 

Per  $100  of  Selling 
Expense 

Per  $100  of  Selling  Expense 
per  Stock  Turnover 

Wages  & 
Salaries 

Advertising 

T/ages  & 
Salaries 

Advertising 

Average 

$46.41 

$70.27 

$18.06 

$39.96 

$10.22 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

37.62 
43.27 
46.39 
45.13 

69.21 
66.23 
72.20 
72.83 

16.56 
19.20 
17.32 
18.34 

14.50 
31.45 

49.70 

5.64 
9.42 

10.91 

Table  Number 

Years 

Number  of 
Store-years 

32 
3  yra. 

165 

149 
3  yrs. 

165 

241 

3  yrs. 

165 

153 

1919 

106 

246 

1919 

106 

A  similar  condition  holds  for  the 
stores  in  each  of  the  other  size-groups, 
as  well  as  for  stores  classified  by  in- 
ventory, but  without  relation  to  size. 
iMoreover,  the  condition  established 
in  this  table  holds  for  each  of  the 
three  years  1914,  1918,  and  1919. 

E. — Amounts  of  Wages  and  Salaries 
and  of  Advertising  per  $100 
Selling  Expense,  for  Stores 
Classified  hy  Amounts  of  Inven- 
tory per  $100  Total  Net  Sales. 

In  Table  G,  Section  II,  the  amounts 
of  wages  and  salaries  and  advertising 
are  shown  per  $100  selling  expense 
for  a  group  of  stores,  for  the  three 
years  1914,  1918,  and  1919,  combined, 
classified  by  the  amounts  of  inven- 


tories per  $100  total  net  sales.  As  the 
amounts  of  inventory  in  relation  to 
sales  increase,  wages  and  salaries  in- 
crease, while  advertising  expenditures 
do  not  show  a  uniform  tendency  either 
to  increase  or  to  decrease.  For  other 
groups  of  stores,  classified  by  size, 
the  direction  of  change  in  the  amounts 
of  wages  and  salaries  and  of  advertis- 
ing is  uncertain.  For  all  the  stores, 
irrespective  of  size,  the  amounts  of 
wages  and  salaries  increase,  while  the 
amounts  of  advertising  tend  neither 
to  increase  nor  to  decrease  as  the  in- 
ventories in  terms  of  sales  increase. 
In  each  of  the  different  years  for  both 
elements  of  expense,  the  nature  of  the 
change  with  increasing  inventories  is 
uncertain. 


19 


F. — Amounts  of  Wages  and  Salaries 
and  of  Advertising  per  $100  of 
Selling  Expense  per  Stock  Turn- 
over, for  Stores  Clmsified  hy 
Amounts  of  Inventory  per  $100 
Total  Net  Sales. 

In  Table  G,  Section  III,  the 
amounts  of  wages  and  salaries  and  of 
advertising  per  $100  selling  expense 
are  shown  for  106  stores  in  1919,  clas- 


4. — AMOUNTS  OF  SELLING  EXPENSE  AND 
ITS  COMPONENTS,  WAGES  AND 
SALARIES,  ADVERTISING,  AND  OTHER 
SELLING  EXPENSE,  IN  RELATION  TO 
THE  AMOUNTS  SOLD  PER  FULL- 
TIME SALES-PERSON. 

Throughout  this  part  of  the  Sum- 
mary, a  single  group  of  stores  having 
sales  between  $40,000  and  $80,000, 
classified  by   the   amounts   sold   per 


TABLE  H 


Amounts  of  Classified-  Selling  Expense 

Amoimt  of 

I 

II 

III 

Salee  per 

Pull-tlme 

fiBles-person 

(In  OOO's) 

Per  $100  of  Total  Ret  Soles 

Per  $100  of  Total  Het  Sales 
per  Stock  Turnover 

Par  $100  of  Total  Hat  Sales  per 

$1,000  of  Sales  per 

Pull-tlme  Sales-person 

Total 
Selling 
Expense 

Bagea  ft 
Salarlea 

Advertising 

Total 
Selling 

Expense 

Wages  k 
Salaries 

Advertising 

Total 
Selling 
Expense 

Wages  k 
Salaries 

Advertising 

Avernga 

$9.20 

$6.45 

$1.67 

$4.17 

$3.00 

$0.76 

$0.69 

$0.48 

$0.12 

Dndar  Jl2 
il2   to  tl6 
$16  to  $24 
$24  to  $32 
$32  t   OTor 

10.82 
9.45 
7.62 
7.15 
4.05 

7.85 
6.51 
5.U 
5.25 
2.44 

1.92 

1.71 
1.42 
1.51 
0.61 

6.03 
5.07 
3.66 
3.42 
2.66 

4.43 
5.70 
2.61 
2.61 
1.56 

0.95 

0.98 
0.62 
0.60 
0.62 

1.08 
0.68 
0.42 
0.26 
0.09 

0.79 
0.47 
0.28 
0.19 
0.06 

0.19 
0.12 
0.08 
0.06 
0.02 

Table  Muaber 

Voar 

Kraiber  of 
Btore-ycara 

49 
3  yrs. 

163 

162 

3  jrs. 

163 

255 

3  yra. 

163 

46 

1919 

103 

158 
1919 

103 

252 

1919 

103 

49 

3  yra. 

163 

162 
3  yra. 

163 

255 

3  yrs. 

163 

sified  by  the  amounts  of  inventories 
per  $100  total  net  sales.  As  the  inven- 
tories in  relation  to  sales  increase, 
both  wages  and  salaries  and  advertis- 
ing, as  proportionate  parts  of  selling 
expense,  when  reduced  to  a  stock 
turnover  basis,  increase.  This  condi- 
tion holds  for  the  stores  in  each  of 
the  other  size-groups,  as  well  as  for 
all  stores,  when  classified  according 
to  inventory  in  relation  to  sales,  but 
irrespective  of  size.  Data  are  avail- 
able in  this  form  for  1919  only. 


full-time  sales-person,  is  used.  The 
different  parts  of  selling  expense  and 
the  total  are  expressed  in  simple  and 
composite  units,  the  purpose  being  to 
reduce  the  varying  conditions  in 
these  stores  to  a  unit  basis, 

A. — Amounts  of  Selling  Expenses  per 
$100  of  Total  Net  Sales,  for 
Stores  Classified  hy  Amounts 
Sold  per  Full-time  Sales-person. 

For  a  group  of  stores  for  the  com- 
bined  years   1914,    1918,   and    1919, 


20 


with  annual  sales  of  $40,000  to  $80,- 
000,  as  shown  in  Table  H,  Section  I, 
the  amounts  of  selling  expense,  of 
wages  and  salaries,  and  of  advertising 
expenditures  per  $100  total  net  sales 
decrease  as  the  amounts  sold  per  full- 
time  sales-person  increase.  Moreover, 
this  condition  holds  for  the  stores  in 
each  of  the  different  size-groups. 
When  the  stores  are  classified  by  loca- 
tion the  amounts  of  total  selling  ex- 
pense and  of  wages  and  salaries  de- 
crease as  the  amounts  sold  per  full- 
time  sales-person  increase.  The  direc- 
tion of  change  for  advertising  is  un- 
certain. 

B. — Amotmts  of  Selling  Expenses  per 
$100  Total  Net  Sales  per  Stock 
Turnover,  for  Stores  Classified 
hy  Amounts  Sold  Per  Full-time 
Sales-person. 

Table  H,  Section  II,  shows  for  a 
group  of  stores  for  1919,  having  sales 
of  $40,000  to  $80,000,  the  amounts  of 
selling  expense,  of  wages  and  salaries, 
and  of  advertising  per  $100  of  total 
net  sales  per  stock  turnover,  for  stores 
classified  by  the  amounts  sold  per 
full-time  sales-person.  As  the  amounts 
sold  per  full-time  sales-person  in- 
crease, the  total  selling  expense  and 
its  components,  wages  and  salaries 
and  advertising,  expressed  in  this 
unit,  decrease.  Moreover,  this  con- 
dition holds  for  the  stores  in  each  of 
the  other  size-groups,  treated  in  the 
text,  as  well  as  for  the  stores  classified 
without  respect  to  size,  but  accord- 
ing to  the  sales  per  sales-person. 
When  the  stores  are  classified  by  loca- 
tion, the  amounts  of  selling  expense 


and  of  wages  and  salaries  decrease. 
The  amounts  of  advertising  are  un- 
certain as  to  direction  of  change. 
How  nearly  these  conditions  hold 
when  the  stores  are  classified  more 
elaborately  will  be  seen  by  consulting 
the  part«  of  the  text  having  to  do 
with  these  topics. 

C. — Amounts  of  Selling  Expenses  per 
$100  Total  Net  Sales  for  Each 
$1,000  Sold  per  Full-time  Sales- 
person, for  Stores  Classified  hy 
Amounts  Sold  per  Full-time 
Sales-person. 

In  Table  H,  Section  III,  the 
amounts  of  total  selling  expense,  of 
wages  and  salaries,  and  of  advertising 
per  $100  of  total  net  sales  for  each 
$1,000  sold  per  full-time  sales-person 
are  shown  for  a  group  of  stores  with 
sales  of  $40,000  to  $80,000,  for  the 
three  years  combined,  when  the  stores 
are  classified  by  the  amounts  sold  per 
full-time  sales-person.  When  the 
amounts  are  expressed  in  this  unit, 
the  total,  as  well  as  the  component 
parts,  wages  and  salaries  and  adver- 
tising, decreases  as  the  sales  per  full- 
time  sales-person  increase.  This  con- 
dition also  holds  for  the  stores  in  each 
of  the  different  size-groups  and  for 
the  total  stores,  when  classified  in  this 
form,  but  irrespective  of  size.  More- 
over, in  each  of  the  different  years, 
each  element  of  selling  expense,  meas- 
ured in  this  unit,  decreases  as  the 
sales  per  full-time  sales-person  in- 
crease. When  the  stores  are  classified 
by  location  into  two  city-groups,  the 
amounts  of  each  element  of  expense 
and  the  total  also  decrease  as  the  sales 


21 


per  full-time  sales-person  increase. 
The  significance  of  such  decreases 
with  increased  activities  of  salesmen 
is  brought  out  more  fully  in  the 
text.  It  is,  however,  of  interest  at 
this  point  to  suggest  the  savings  in 
the  different  elements  of  expense 
which  accompany  the  increased  activ- 
ities of  salesmen.  To  increase  the 
amounts  of  goods  sold  per  salesman 
is  one  of  the  many  ways  in  which 
operating  expenses  in  relation  to 
sales  may  be  reduced. 

TABLE  I 


Ajnouzita 

of  Total  Selling  B^enae 

Anount  of 

1 

11 

III 

Sales  por 

Full-tiue 

Salea-psrson 

(in  OOO'a) 

Per  ilOO  of 
Total  Expense 

Per  ClOO  of 

Total  Expense 

par  Stock 

Turnover 

Per  $100  of 
Total  Expense 
per  $1,000  of 
Sales  per 
Pull-tine 
Sales-person 

ATSrage 

1»;.07 

$23.33 

$3.44 

tJnder  $12 
$12  to  $16 
$1«  to  $24 
$24  to  $52 
$32  &  over 

50. M 
45. J7 
41.61 
53.65 
55.72 

28.05 
27. »5 
,21.70 
19. S3 

10.62 

5.04 
5.29 
2.27 
1.45 
0.84 

Table  number 

Years 

Number  of 
Store-yeare 

59 
5  yrs. 

165 

57 
1919 

103 

59 
3  yrs. 

163 

D. — Amounts  of  Selling  Expense  per 

$100  Total  Expense,  for  Stores 

Classified  hy  Ammmts  Sold  per 

Full-time  Sales-person. 

Table    I,    Section    I,    shows    the 

amounts  of  selling  expense  per  $100 

total  expense  for  a  group  of  stores  for 

the  three  years  1914,  1918,  and  1919, 

combined,   which  had  sales  between 

$40,000  and  $80,000  per  year.     The 

average  amounts  are  shown  for  these 

stores  when  classified  by  the  amounts 


sold  per  full-time  sales-person.  As 
such  amounts  increase,  selling  ex- 
penses, as  proportionate  parts  of  total 
expense,  decrease.  The  same  condi- 
tion holds  for  the  stores  in  the  other 
size-groups,  treated  in  the  text,  and 
also  for  all  the  stores  when  they  are 
classified  in  this  form,  but  without 
respect  to  size.  In  each  of  the  differ- 
ent years,  1914,  1918,  and  1919, 
moreover,  the  amounts  of  selling  ex- 
pense as  proportionate  parts  of  total 
expense  decrease  with  increasing  sales 
per  full-time  sales-person. 

E. — Amounts  of  Selling  Expense  per 
$100   Total  Expense  per  Stock 
Turnover,  for  Stores  Classified  hy 
Amounts     Sold     per    Full-time 
Sales-person. 
Section  II  of  Table  I  shows   the 
amounts  of  selling  expense  per  $100 
of  total  operating  expense  reduced  to 
a  per  turn  basis.    The  stores  included 
are  those  having  sales  of  $40,000  to 
$80,000,  and  the  basis  of  classification 
is  the  amount  sold  per  full-time  sales- 
person.   As    the    amounts    increase, 
selling  expense  expressed  in  this  man- 
ner decreases.     This  condition  holds 
for  the  stores  in  the  other  size-groups 
and  also  for  the  stores  as  a  whole, 
classified  in  this  form,  but  irrespective 
of  size. 

F. — Ammints  of  Selling  Expense  per 
$100  Total  Expense  per  $1,000 
Sold  for  Each  Full-Time  Sales- 
person, for  Stores  Classified  by 
Amounts  Sold  per  Full-time 
Sales-person. 
Table    I,    Section    III,    shows    the 

amounts  of  selling  expense  for  $100 


22 


total  expense  for  each  $1,000  sold  per 
full-time  sales-person.  The  details 
apply  to  a  group  of  stores  having 
sales  of  $40,000  to  $80,000,  when  clas- 
sified according  to  the  amounts  sold 
per  full-time  sales-person.  As  these 
amounts  increase,  selling  expenses  ex- 
pressed in  this  form  decrease.  The 
table  refers  to  a  single  size-group  for 
the  three  years  combined.  In  each 
of  the  other  size-groups  and  for  all 
the  stores  in  the  combined  and  in  the 
individual  years,  however,  the  same 
condition  holds.  Moreover,  from 
years  to  year,  the  amounts  decreased. 
Certain  modifications  of  these  conclu- 
sions must  be  made  for  stores,  when 
they  are  classified  not  only  by  size, 
but  also  by  location.  These  are 
pointed  out  in  the  body  of  the  text. 


G. — Amounts  of  Wages  and  Salaries 
and  of  Advertising  per  $100 
Selling  Expense,  for  Stores  Clas- 
sified by  Amounts  Sold  per  Full- 
time Sales-person. 

Table  J,  Section  I,  shows  for  the 
combined  years  1914,  1918,  and  1919, 
the  amounts  of  w^ages  and  sala- 
ries and  of  advertising  per  $100  of 
selling  expense  for  a  group  of  stores 
with  sales  of  $40,000  to  $80,000.  The 
basis  of  classifying  the  stores  is  the 
amount  sold  per  full-time  sales-per- 
son. As  the  sales  per  sales-person  in- 
crease, the  amounts  of  wages  and  sal- 
aries decrease  and  the  amounts  of 
advertising  increase.  For  the  stores 
in  the  other  size-groups,  the  same  con- 
dition obtains  for  wages  and  salaries, 


TABLE  J 


Amounts  of  Classified  Selling  Expense 

Amount  of 
Sales  per 
Pull-tlme 
Sales-person 
(In  OOO's) 

I 

II 

III 

Per  $100  of  Selling 
Expense 

Per  $100  of  Selling 

Expense  per  Stock 

Turnover 

Per  $100  of  Selling  Expense 
per  $1,000  of  Sales  per 
PuU-tima  Sales-person 

Wages  & 
Salaries 

Advertising 

Wages  & 
Salaries 

Advertising 

Wages  & 
Salaries 

Advertising 

Avorago 

$70.15 

$18.19 

$39.96 

$10.16 

$5.24 

$1.36 

Under  $12 
$12  to  $16 
$16  to  $24 
$24  to  $32 
$32  &  over 

72.53 
68.95 
67,07 
73.4& 

60.63 

17.76 
18.07 
18.65 

21.08 
20.06 

49.01 
42.96 
39.59 
36.40 
31.26 

10.51 

11.43 

9.44 

8.45 

12.32 

7.25 

4.99 
3.66 
2.68 
1.43 

1.78 
1.31 
1.02 
0.77 
0.47 

Table  HTunber 

Years 

Number  of 
Store -years 

168 
3  yrs. 

163 

261 

3  yrs. 

163 

166 
1919 

103 

259 
19a9 

103 

168 
3  yrs. 

163 

261 
3  yra. 

165 

23 


while  the  direction  of  change  is  un- 
certain for  the  amounts  of  advertis- 
ing. When  all  the  stores  are  classified 
in  the  form  shown  in  the  table,  the 
amounts  of  wages  and  salaries  de- 
crease, and  the  amounts  of  advertis- 
ing increase.  These  generalizations 
are  based  upon  the  averages  for  three 
years.  In  a  general  way,  however, 
the  condition  shown  in  the  table  for 
the  combined  years  also  holds  in  the 
different  years.  When  the  stores  are 
classified  by  location,  it  is  impossible 
to  generalize  as  to  the  direction  of 
change  in  the  amounts.  The  reader  is 
advised  to  consult  the  text  treatment 
of  this  matter  both  for  the  actual 
amounts  and  for  the  nature  of  the 
change  with  increasing  amounts  sold 
per  full-time  sales-person. 

H. — Amounts  of  Wages  and  Salaries 
and  Advertising  per  $100  Selling 
Expense  per  Stock  Turnover,  for 
Stores  Classified  hy  Amounts 
Sold  per  Full-time  Sales-person. 

Table  J,  Section  II,  shows  for  the 
year  1919  the  amounts  of  wages  and 
salaries  and  of  advertising  per  $100 
selling  expense  per  stock  turnover  for 
a  group  of  stores  which  had  sales  from 
$40,000  to  $80,000.  The  averages 
apply  to  stores  classified  according  to 
the  sales  per  full-time  sales-person. 
As  such  sales  increase,  wages  and  sal- 
aries expressed  in  this  unit  decrease, 
while  the  direction  of  change  for  ad- 
vertising expenditures  is  uncertain. 
For  each  of  the  other  size-groups,  as 
well  as  for  all  of  the  stores,  the  same 
conditions  obtain.  It  is  well,  in  this 
connection,    to    consult    the    detailed 


text  treatment  for  the  amounts  as  well 
as  the  nature  of  the  change  under  dif- 
ferent conditions  of  store  operation. 

/. — Amounts  of  Wages  and  Salaries 
and  Advertising  per  $100  Selling 
Expense  for  Each  $1,000  Sold 
per  Full-time  Sales-person,  for 
Stores  Classified  hy  the  Amounts 
Sold  per  Full-time  Sales-person. 
In  Table  J,  Section  III,  the 
amounts  of  wages  and  salaries  and 
advertising  are  shown  per  $100  of  sell- 
ing expense  for  $1,000  sold  per  full- 
time  sales-person.  By  expressing  the 
amounts  in  this  form,  the  different 
conditions  of  store  operation  are  re- 
duced to  a  unit  basis.  For  the  groups 
of  stores  under  consideration,  as  the 
amounts  sold  per  full-time  sales-per- 
son increase,  the  expenditures  for 
wages  and  salaries  and  for  advertis- 
ing decrease.  Moreover,  this  condition 
holds  for  the  stores  in  the  other  size- 
groups  as  well  as  for  the  stores  as  a 
whole,  when  classified  by  the  amounts 
sold  per  person.  The  condition  shown 
in  the  table  for  the  combined  years 
also  holds  in  each  of  the  individual 
years.  From  year  to  year,  the 
amounts  of  both  expenditures  de- 
creased. For  the  direction  of  change 
in  the  amounts  for  the  stores  when 
classified  by  location,  the  reader  is 
referred  to  the  text  treatment. 

5. — AMOUNTS  OF  SELLING  EXPENSE  AND 
ITS  COMPONENTS,  WAGES  AND  SAL- 
ARIES AND  ADVERTISING,  IN  RELA- 
TION   TO   EXPENDITURES    FOR   RENT. 

The  method  of  classifying  the 
stores,  the  expenditures  of  which  are 
here  summarized  is  according  to  the 


24 


TABLE  K 


AnountB  of  Claaalf led  Selling  Expense 

Amounts  of  Wages 
&  Salaries 

Rent  per 
100  Bq.  Pt. 

1 

II 

III 

IV 

of 
Ploop  Bpace 

Per  ?100  of  Total 
Net  Sales 

Per  $100  of  Total  Het 

Sales  per  Sales  per 

Sq.  Pt. 

Per  $100  of 
Selling 
Expense 

Per  $100  of 

Selling 

Expense 

per  Sales 

per  Sq.  Pt. 

Totttl 
Selling 
Expense 

V.agee  & 
Salaries 

Total 
Selling 
Expense 

Wages  & 
Salaries 

Average 

$7.15 

$5.09 

$0.38 

$0.27 

$71.31 

$3.82 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

6.63 
6.33 
7.55 
8.44 

S.Ol 
4.41 
5.42 
6,00 

0.6S 
0.34 
0.35 
0.28 

0.50 
0.23 
0.25 
0.20 

75.57 
69.61 
71.73 
71.10 

7.50 
5.69 
3.30 

2.33 

Table  H\:iiiber 

Year 

Humber  of 
Store-yeaps 

77 
1919 

113 

184 
1919 
113 

77 
1919 

113 

184 
1919 
113 

185 

1919 
U3 

185 
1919 
113 

expenditures  for  rent  per  100  square 
feet  of  floor  space  in  1919.  In  view  of 
the  fact  that  the  different  elements  of 
expense  are  controlled  in  part  by  store 
location  and  by  the  amount  of  floor 
space  utilized,  it  is  thought  worth- 
while to  summarize  briefly  the  part  of 
the  discussion  which  relates  to  this 
topic.  While  it  is  impossible  ade- 
quately to  deal  with  this  subject  in  a 
summary,  certain  general  conclusions 
of  the  treatment  may  be  summarized 
for  a  single  group  of  stores.  For  this 
purpose,  113  stores  having  sales  of 
$40,000  to  $80,000  in  1919  are  used. 

A. — Amounts  of  Selling  Expensed  per 
$100  of  Total  Net  Sales,  for 
Stores  Classified  hy  Amounts  of 
Rent  Paid  per  100  Square  Feet 
of  Floor  Space. 


In  Table  K,  Section  I,  the  amounts 
of  total  selling  expense  and  of  wages 
and  salaries  per  $100  total  net  sales 
are  shown  for  113  stores  having  sales 
of  $40,000  to  $80,000  when  the  same 
are  classified  by  the  rental  expendi- 
tures per  100  square  feet  of  floor  space. 
As  the  rents,  expressed  in  this  form, 
increase,  total  selling  expense  and 
wages  and  salaries  in  relation  to  sales 
increase.  Moreover,  this  condition,  so 
far  as  the  total  selling  expense  is  con- 
cerned, also  holds  for  the  stores  in 
the  other  size-groups.  The  direction 
of  change  for  wages  and  salaries  for 
the  other  groups  is  uncertain.  For  all 
the  stores,  irrespective  of  size,  the 
amounts  of  wages  and  salaries  tend  to 
increase,  while  those  of  total  selling 
expense  are  uncertain  as  to  direction 
of  change.    When  the  stores  are  clas- 


25 


sified  by  location,  and  by  rental  pay- 
ments per  100  square  feet  of  floor 
space,  the  amounts  of  total  selling 
expense  and  of  wages  and  salaries  in- 
crease as  rental  payments  per  100 
square  feet  of  floor  space  increase. 

B. — Amounts  of  Selling  Expenses  per 
$100  Total  Net  Sales,  for  the 
Amount  Sold  per  Square  Foot  of 
Floor  Space  for  Stores  Classified 
hy  Amounts  of  Rent  Paid  per  100 
Square  Feet  of  Floor  Space. 

Table  K,  Section  II,  shows  for  113 
stores  in  1919  the  amounts  of  selling 
expense  and  of  wages  and  salaries  per 
$100  total  net  sales  for  the  amount 
sold  per  square  foot  of  floor  space. 
By  expressing  the  expenditures  in  this 
form,  the  different  elements  of  store 
operation  named  in  the  table  are  re- 
duced to  a  unit  basis.  The  stores  are 
classified  according  to  the  rentals  per 
square  foot  of  floor  space.  As  the 
amounts  expended  for  this  purpose 
increase,  both  selling  expense  and 
wages  and  salaries  decrease.  Such  a 
condition  holds  also  for  the  stores  in 
the  other  size-groups  and  for  all  the 
stores,  irrespective  of  size,  when  clas- 
sified in  this  form. 

C. — Amounts  of  Wages  and  Salaries 
per  $100  Selling  Expense,  for 
Stores  Classified  by  Amounts  of 
Rent  Paid  per  100  Square  Feet 
of  Floor  Space. 

In  Table  K,  Section  III,  the 
amounts  of  wages  and  salaries  per 
$100  selling  expense  are  shown  for  a 
group  of  stores,  having  sales  of  $40,- 
000  to  $80,000  in  1919,  when  they  are 


classified  by  the  rental  payments  per 
100  square  feet  of  floor  space.  As  the 
rental  payments  increase,  wages  and 
salaries  decrease.  Moreover,  this  con- 
dition obtains  for  the  stores  in  each 
of  the  other  size-groups  and  for  all 
stores  classified  in  this  form  but  with- 
out respect  to  size. 

D. — Amounts  of  Wages  and  Salaries 
per  $100  Selling  Expense  for  the 
Amount  Sold  per  Square  Foot  of 
Floor  Space,  for  Stores  Classified 
hy  Amounts  of  Rent  Paid  per 
100  Square  Feet  of  Floor  Space. 
In    Section    IV,   of   Table  K,   the 
amounts  of  wages  and  salaries  per 
$100  selling  expense  for  the  amounts 
sold  per  square  foot  of  floor  space 
are  shown   for  1919   for   113   stores 
classified  by  rental  payments  per  100 
square  feet  of  floor  space.    For  pur- 
poses of  summary,  the  stores  having 
sales  of  $40,000  to  $80,000  are  used. 
One  result  of  increasing  rental  pay- 
ments is  a  saving  in  the  amount  of 
floor    space    utilized.     Accordingly, 
when    wages    and    salaries    are    ex- 
pressed in  relation  to  selling  expense 
and  the  amount  sold  per  square  foot 
of  floor  space,  they  decrease  as  the 
rentals  paid  per  100  square  feet  of 
floor  space  increase.  For  other  groups 
of  stores,  a  similar  condition  obtains. 

6. — AMOUNTS  OP  SELLING  EXPENSE  AND 
ITS  COMPONENTS,  WAGES  AND  SAL- 
ARIES AND  ADVERTISING,  IN  RELA- 
TION TO  THE  AMOUNTS  OF  FIXTURE 
INVESTMENTS  PER  $100  OF  TOTAL 
NET   SALES. 

One  section  of  the  text  is  devoted  to 
an  analysis  of  the  amounts  of  selling 


26 


TABLE  L 


AmountB  of  ClasElfled  Selling 
Expense 

Amoxints  of 
Total  Selling 
Expense 

Amounts  of  Classified 
Selliz^  Expense 

Amotmt  of 
PlxtTire  Account 

1 

II 

III 

per  $100  of 
Total  Het  Sales 

Per  $100  of  Total  Net  Salee 

Per  $100  of 

Total 

Zxpense 

Per  $100  of  Selling 

ExRer.se 

Total  Selling 
Expense 

Wages  & 
Salaries 

Advertising 

Wages  & 
Salaries 

Advertising 

Average 

|9.50 

$6.57 

$1.68 

$46.52 

$70,68 

$18.04 

Under  $2 
|2  to  $4 

$4  to  $6 

te  &  over 

7.11 

9.56 
11.65 

5.27 
5.71 
6.39 
8.88 

0.95 
1.64 
1.89 
1.95 

45.03 
43. U 
47.30 
51.51 

74.16 

68.31 

66.81 
74.93 

13.30 
19.66 
19.79 
16.42 

Table  Number 

Years 

Number  of 
Store-years 

89 
S  yrs. 

153 

193 
3  yrs. 

153 

273 
3  yrs. 

153 

97 

3  yrs. 

153 

198 

3  yrs. 

153 

281 
3  yrs. 

155 

expense  in  stores  with  different  fix- 
ture investments  in  relation  to  sales. 
It  is  the  purpose  of  the  summary  and 
of  Table  L  to  indicate  in  brief  the 
amounts  of  the  different  elements  of 
expenditures  for  stores  classified  by 
the  relation  of  their  fixture  account 
to  sales,  and  to  indicate  the  tendency, 
if  any,  for  these  amounts  to  increase 
or  to  decrease  under  different  condi- 
tions of  store  operation. 

A. — Amounts  of  Sellhig  Expenses  per 
$100  of  Total  Net  Sales,  for 
Stores  Classified  hy  Amounts  In- 
vested in  Fixtures  per  $100  of 
Total  Net  Sales. 

Table  L,  Section  I,  shows  for  the 
three  years  combined  the  amounts  of 
selling  expense,  wages  and  salaries, 
and  advertising  per  $100  total  net 
sales  for  a  group  of  stores  with  sales 


of  $40,000  to  $80,000,  classified  by 
the  amount  invested  in  fixtures  per 
$100  of  total  net  sales.  As  the 
amounts  invested  in  this  form  in- 
crease, total  selling  expense,  wages 
and  salaries,  and  advertising  expen- 
ditures likewise  increase.  For  the 
stores  in  each  of  the  other  size-groups 
and  for  all  the  stores,  classified  irre- 
spective of  size,  a  similar  condition 
obtains.  Moreover,  increases  in  each 
of  the  different  elements  of  expense 
are  encountered  in  each  of  the  years 
for  stores  classified  in  this  form. 

B. — Amounts  of  Selling  Expense  per 
$100  Total  Expense,  for  Stores 
Classified  by  Amounts  Invested 
in  Fixtures  per  $100  Total  Net 
Sales. 

Table    L,    Section    II,    shows    the 
amounts  of  selling  expense  per  $100 


27 


total  operating  expense  for  a  group  of 
stores  during  the  three  years  1914, 
1918,  and  1919,  combined,  which  had 
sales  of  $40,000  to  $80,000,  M-hen  the 
stores  are  classified  by  the  amounts 
invested  in  fixtures  per  $100  total  net 
sales.  As  these  amounts  increase, 
selling  expense  as  a  proportionate 
part  of  total  operating  expense  in- 
creases. For  the  stores  in  the  other 
size-groups,  and  for  the  stores  when 
classified  in  this  form  but  irrespective 
of  size,  however,  the  direction  of 
change  in  the  amounts  is  uncertain. 
Moreover,  in  each  of  the  individual 
years  there  seems  to  be  no  unmistak- 
able tendency  for  the  amounts  to  in- 
crease or  to  decrease. 

C. — Amounts  of  Wages  and  Salaries 
and  of  Advertising  per  $100 
Selling  Expense,  for  Stores  Clas- 
sified by  Amounts  Invested  in 
Fixtures  per  $100  Total  Net 
Sales. 

In  Section  III  of  Table  L,  the 
amounts  of  wages  and  salaries  and 
of  advertising  per  $100  of  selling  ex- 
pense for  a  group  of  stores  for  the 
three  years  1914,  1918,  and  1919, 
combined,  are  shown  when  the  stores 
are  classified  by  the  amount  of  fixture 
investment  per  $100  total  net  sales. 
As  the  amounts  of  fixture  investment 
per  $100  total  net  sales  increase,  there 
seems  to  be  no  certain  tendency  for 
wages  and  salaries  and  advertising 
either  to  increase  or  to  decrease.  It  is 
to  be  noted  that  this  condition  is 
true  also  for  the  stores  in  each  of  the 
other  size-groups. 


7. AMOUNTS  OF  SELLING  EXPENSE  AND 

ITS  COMPONENTS,  WAGES  AND  SAL- 
ARIES AND  ADVERTISING,  IN  RELA- 
TION TO  INVESTMENTS  IN  FIXTURES 
PER  100  SQUARE  FEET  OF  FLOOR 
SPACE. 

Two  methods  of  classifying  the 
stores  in  relation  to  investments  in 
fixtures  are  used.  In  Table  L  the 
amounts  are  stated  in  relation  to  sales 
while  in  Table  M  they  are  given  in 
terms  of  floor  space. 

A. — Amounts  of  Selling  Expenses  per 
$100  Total  Net  Sales,  for  Stores 
Classified  by  Amaunts  Invested 
in  Fixtures  per  100  Square  Feet 
of  Floor  Space. 
Table  M,  Section  I,  shows  for  1919 
the  amounts  of  total  selling  expense 
and  wages  and  salaries  per  $100  total 
net  sales  for  113  stores,  classified  by 
the  amounts  invested  in  fixtures  per 
100  square  feet  of  floor  space.    As  the 
amounts   so   invested   increase,    both 
selling  expense  and  wages  and  salaries 
per    $100    total    net    sales    increase. 
This  condition,  moreover,  holds  for 
the  stores  in  other  size-groups  and  for 
all   the   stores,    irrespective   of   size, 
when  they  are  classified  by  the  fix- 
ture investment  in  relation  to  floor 
space. 

B. — Amounts  of  Selling  Expenses  per 
$100  Total  Net  Sales  for  the 
Amount  Sold  per  Square  Foot  of 
Floor  Space,  for  Stores  Classified 
by  Amounts  Invested  in  Fixtures 
per  100  Square  Feet  of  Floor 
Space. 
Table    M,    Section    II,    shows    the 

amounts   of  selling   expense   and   of 


28 


TABLE  M 


Amounts  of  Classified  Selling  Expense 

Amounts  of  Wages 
&  Salaries 

Amount  of 
Plxtxire  Accoimt 

I 

II 

III 

IV 

per  100  sq.  ft. 

of 

Floor  Space 

Per  $100  of  Total 
Net  Sales 

Per  $100  of  Total  Net 

Sales  per  Sales  per 

sq.  ft. 

Per  $100  of 
Selling 
Expense 

Per  $100  of 
Selling 

Total 
Selling 
Expense 

Wages  & 
Salaries 

Total 
Selling 
Expense 

77age8  & 
Salaries 

Expense 

per  Sales 

per  aq.  ft. 

Average 

$7.13 

$5.09 

$0.38 

$0.27 

$71.31 

$3.82 

Under  $40 
#40  to  $80 
$80  to  $120 

$120  &  over 

6.76 
6.42 
7.80 
8.85 

4.71 
4.54 
5.49 
6.82 

0.45 
0.32 
0.33 
0.48 

0.32 
0.23 
0.23 
0.37 

69.64 
70.61 
70.31 
77.04 

4.66 
3.50 
2.07 
4.14 

Table  Ntnnber 

Toar 

ITunbor  of 
Store-yaars 

104 
1919 

113 

203 
1919 

113 

104 
1919 
113 

203 
1919 
113 

205 
1919 
113 

205 
1919 
113 

wages  and  salaries  per  $100  total  net 
sales  for  the  amount  sold  per  square 
foot  of  floor  space.  The  amounts  re- 
fer to  113  stores  with  sales  of  $40,000 
to  $80,000  in  1919,  classified  by  the 
fixture  investment  per  100  square  feet 
of  floor  space.  As  the  investments 
measured  in  this  way  increase,  there 
seems  to  be  a  general  tendency  for 
the  amounts  of  selling  expense  to  in- 
crease. Such  a  condition  holds  also 
for  the  stores  in  the  other  size-groups 
and  for  all  the  stores,  irrespective  of 
size,  when  classified  in  this  manner. 
The  direction  of  change  in  the 
amounts  of  wages  and  salaries  for  the 
group  of  stores  included  in  the  table 
is  uncertain.  For  other  groups  and 
for  the  total,  the  general  tendency  is 
for  the  amounts  to  decrease  as  the 
fixture  investments  increase.    Certain 


exceptions  to  this  tendency,  however, 
occur,  and  it  is  impossible  to  sum- 
marize them  in  a  brief  statement. 

C. — Ammints  of  Wages  and  Salaries 
per  $1W  of  Selling  Expense,  for 
Stores  Clarified  by  Amounts  In- 
vested in  Fixtures  per  100  Square 
Feet  of  Floor  Space. 

Table  M,  Section  III,  shows  the 
amounts  of  wages  and  salaries  per 
$100  of  selling  expense  in  1919  for 
113  stores  with  sales  of  $-40,000  to 
$80,000,  when  the  same  are  classified 
by  the  amount  of  fixture  investments 
per  100  square  feet  of  floor  space.  As 
the  investments  measured  in  this 
manner  increase,  wages  and  salaries 
per  $100  selling  expense  also  increase. 
That  is,  under  the  conditions  named, 
wages  and  salaries  constitute  an  in- 


29 


ereasingly  larger  proportion  of  the 
total  selling  expense.  How  nearly 
this  condition  obtains  for  stores  in 
the  other  size-groups  and  for  the  total, 
irrespective  of  size,  may  be  seen  by 
consulting  the  text  treatment  and  the 
tables  concerned. 

D. — Amounts  of  Wages  and  Salaries 
per  $100  Selling  Expense  for  the 
Amount  Sold  per  Square  Foot  of 
Floor  Space,  for  Stores  Classified 
ty  Amounts  Invested  in  Fixtures 
per  100  Square  Feet  of  Floor 
Space. 

Table  M,  Section  IV,  shows  the 
amounts  of  wages  and  salaries  per 
$100  of  selling  expense  reduced  to  a 
unit  basis  for  the  amount  sold  per 
square  foot  of  floor  space.  The  stores 
are  those  having  sales  of  $40,000  to 
$80,000.  They  are  classified  accord- 
ing to  their  fixture  investments  in  re- 
lation to  floor  space.  As  these  invest- 
ments increase,  wages  and  salaries, 
measured  in  this  form,  decrease,  if 
the  stores  having  investments  of  $120 
and  over  per  100  square  feet  of  floor 
space  are  excepted.  For  the  stores  in 
the  other  size-groups,  the  amounts  of 
wages  and  salaries  under  the  condi- 
tions established  in  the  table  also  tend 
to  decrease. 

8. — AMOUNTS  OP  SELLING  EXPENSE 
AND  ITS  COMPONENTS,  WAGES  AND 
SALARIES  AND  ADVERTISING,  IN  RE- 
LATION TO  EXPENDITURES  FOR  AD- 
VERTISING PER  $100  TOTAL  NET 
SALES. 

In  Table  N  the  amounts  of  expenses, 
expressed  in  terms  of  sales,  of  total 


expense,  and  of  selling  expense,  are 
shown  in  simple  and  complex  units 
for  stores  with  sales  of  $40,000  to 
$80,000,  and  with  different  expendi- 
tures for  advertising  in  relation  to 
sales.  The  purpose  of  the  text  treat- 
ment of  this  topic  is  to  determine,  if 
possible,  the  effect  which  different 
amounts  of  advertising  have  upon 
selling  expense.  It  is  impossible 
briefly  to  summarize  all  the  conclu- 
sions in  the  text  or  to  duplicate  all 
the  different  ratios.  Reference  should 
be  made  to  the  text  treatment  under 
various  classifications  of  stores. 

A. — Am&unts  of  Selling  Expenses  per 
$100  Total  Net  Sales,  f&r  Stores 
Classified  hy  Amounts  of  Adver- 
tising Expenditure  per  $100 
Total  Net  Sales. 

Table  N,  Section  I,  shows  for  1919 
the  amounts  of  selling  expense  and  of 
wages  and  salaries  per  $100  of  total 
net  sales  for  106  stores,  classified  by 
the  amounts  of  advertising  in  relation 
to  sales.  As  the  amounts  increase, 
selling  expense  and  wages  and  sal- 
aries also  increase.  For  purposes  of 
summary,  a  group  of  stores  with  sales 
of  $40,000  to  $80,000  has  been 
selected.  To  have  ignored  store  size 
in  this  connection,  in  view  of  the  fact 
that  the  amounts  of  advertising  per 
$100  total  net  sales  increase  with  store 
size,  would  have  made  such  a  compar- 
ison meaningless.  Similar  increases 
hold  for  the  stores  in  each  of  the 
other  size-groups.  When  the  stores 
are  classified  by  location,  it  is  difficult 
to  generalize  as  to  the  direction  of 
change    or    briefly    to    indicate    the 


30 


TABLE  N 


Amounts  of  Classified  Belling  Expanse 

Amoimts  of  Total, 
Selling  Expenoo 

Amounts  of  Wages 
8:  Salaries 

Amount  of 
Advertising 

I 

II 

■  III 

IV 

V 

VI 

per  $100  of 

Total 

Hat  Sales 

for  $100  of  Total 
Nat  Salaa 

Per  $100  of  Total  Vet 

Sales  per  Stock 

Turnover 

Par  5100  of 

Total 

pxpenea 

Per  SlOO  of 

Total 

Expenae 

per  Stock 

Turnover 

Per  $100  of 
Selling 
Expenoo 

Per  5lOO  of 
Selling 

Total 
Selling 
Expense 

nages  & 
Salaries 

Total 
Selling 
Expenaa 

Wagas  & 
Salaries 

Ejcpenso 
por  Stocl: 
T'lmovcr 

Average 

$7.45 

$5.36 

?4.14 

$2.93 

$41.79 

$23.32 

$71.92 

$39,95 

Qader  |l 
♦l  to  $2 
$2  to  ii 

♦3  i  over 

S.77 
7.54 
9.32 
13.23 

4.53 
6.25 
6.14 
8.57 

3.21 
4.32 
5.18 

7.73 

2.S4 

3.09 
3.41 
S.04 

37.37 

40.49 
45.15 
54.13 

21.04 

23.82 
25.09 
31.34 

79.37 
71.64 
65.92 
64.73 

44.09 
42.14 
36.62 
50.08 

Table  Humber 

Year 

number  of 
8tore-7oars 

107 
X919 

106 

206 
1919 

105 

109 
1319 

106 

206 

1919 

106 

115 

1019 

105 

115 
1919 

105 

207 
1919 

105 

207 
1919 

106 

actual  expenditures.  The  reader  is 
advised  to  consult  the  text  for  a  more 
elaborate  treatment  of  the  subject 
and  the  conclusions  to  which  it  has 
led. 

B. — Amounts  of  Selling  Expenses  per 
$100  Total  Net  Sales  per  Stock 
Turnover,  for  Stores  Classified 
hy  Amounts  of  Advertising  Ex- 
penditure per  $100  Total  Net 
Sales. 

In  Section  II  of  Table  N  the 
amounts  of  selling  expense  and  of 
wages  and  salaries  per  stock  turnover 
are  shown  for  106  stores  in  1919, 
having  sales  of  $40,000  to  $80,000, 
when  the  same  are  classified  by  the 
amounts  expended  for  advertising  per 
$100  total  net  sales.  As  these  amounts 
increase,  the  total  selling  expense  and 
the  wages  and  salaries  also  increase. 
Similar  increases  characterize  the 
stores  in  the  other  size-groups.     The 


expenditures  are  reduced  to  a  unit 
turnover  basis,  thus  making  more 
directly  comparable  the  operating 
conditions  of  the  different  stores. 

C. — Amomits  of  Selling  Expense  per 
$100  Total  Expense,  for  Stores 
Classified  hy  Amounts  of  Adver- 
tising Expenditure  per  $100 
Total  Net  Sales. 

In  Section  III  of  Table  N  the 
amounts  of  selling  expense  per  $100 
total  operating  expense  are  shown  for 
106  stores  in  1919,  with  sales  of  $40,- 
000  to  $80,000,  classified  by  the 
amounts  of  advertising  per  $100  total 
net  sales.  As  these  amounts  increase, 
selling  expense  becomes  a  proportion- 
ately larger  percentage  of  total  oper- 
ating expense.  For  other  groups  of 
stores,  when  classified  by  size,  and  for 
the  total  stores,  note  that  the  direc- 
tion of  change  in  these  amounts  is 
uncertain. 


31 


D. — Amounts  of  Selling  Expense  per 
$100  Total  Expense  per  Stock 
Turnover,  for  Stares  Classified 
by  Amounts  of  Advertising  Ex- 
penditure per  $100  of  Total  Net 
Sales. 

In  Table  N,  Section  IV,  the  amounts 
of  selling  expense  per  $100  total 
operating  expense,  when  reduced  to 
a  stock  turnover  basis  are  shown  for 
106  stores  in  1919,  with  sales  of  $40,- 
000  to  $80,000,  when  the  same  are 
classified  by  the  amount  of  advertis- 
ing per  $100  total  net  sales.  As  the 
amounts  spent  for  this  purpose  in- 
crease, the  expenditures  for  selling 
also  increase.  For  the  stores  in  the 
other  size-groups,  the  direction  of 
change  is  uncertain  in  some  respects. 
The  nature  of  the  differences  may  be 
seen  by  consulting  the  tables  in  the 
text  proper.  For  the  amounts  for 
stores  classified  by  location,  the  reader 
is  also  advised  to  consult  the  text. 

E. — Amou7its  of  Wages  and  Salaries 
per  $100  Selling  Expense,  for 
Stores  Classified  by  Am,ounts  of 
Advertising  Expenditure  per 
$100  Total  Net  Sales. 

In  Section  V  of  Table  N,  the 
amounts  of  wages  and  salaries  per 
$100  selling  expense  are  shown  for 
106  stores  having  sales  of  $40,000  to 
$80,000  in  1919,  when  they  are  clas- 
sified by  the  amounts  expended  for 
advertising  per  $100  total  net  sales. 
As  the  amounts  expended  for  this 
purpose  increase,  wages  and  salaries 
become  proportionately  smaller  parts 
of  selling  expense.     This  condition, 


moreover,  holds  for  the  stores  in  each 
of  the  different  size-groups  and  also 
for  the  stores  as  a  whole,  irrespective 
of  size,  classified  according  to  adver- 
tising expenditures  per  $100  total  net 
sales. 

F. — Amounts  of  Wa{ies  and  Salaries 
per  $100  Selling  Expense  per 
Stock  Turnover,  for  Stores  Clas- 
sified by  Amounts  of  Advertising 
Expenditure  per  $100  Total  Net 
Sales. 

Table  N,  Section  VI,  shows  the 
amounts  of  wages  and  salaries  per 
$100  selling  expense  reduced  to  a  per- 
stock  turnover  basis.  The  averages 
refer  to  106  stores  in  1919,  having 
sales  of  $40,000  to  $80,000  and  clas- 
sified by  the  expenditures  for  adver- 
tising in  relation  to  sales.  As  the 
amounts  spent  for  this  purpose  in- 
crease, wages  and  salaries,  measured 
in  this  unit,  decrease.  This  condition 
holds  for  the  stores  in  each  of  the 
other  size-groups  and  for  all  of  the 
stores  classified  in  this  manner  but 
irrespective  of  size. 

9. — AMOUNTS  OP  SELLING  EXPENSE  AND 
ITS  COMPONENTS,  W^AGES  AND  SAL- 
ARIES AND  ADVERTISING,  FOR  STORES 
CLASSIFIED  BY  EXPENDITURES  FOR 
ADVERTISING,  BY  METHODS  OF  PAY- 
ING SALESMEN,  AND  BY  RELATIVE 
RATES  OF  PROFIT  PER  $100  TOTAL 
NET   SALES. 

In  the  body  of  the  text  special  at- 
tention is  given  to  the  effect  which 
expenditures  for  advertising  per  $100 
total  net  sales  in  1914  and  1918  had 
upon  sales  and  selling  expense  in  sub- 


32 


sequent  years.  The  details  resulting 
from  this  analysis  are  contained  in 
Tables  112  to  114,  inclusive.  While 
it  is  impossible  to  summarize  them 
briefly,  it  is  concluded  that  the  expen- 
ditures for  advertising  offer  a  means 
by  which  selling  expenses  may  be  re- 
duced. Obviously,  there  are  limita- 
tions beyond  which  this  is  not  true, 
and  it  is  not  claimed  that  the  analysis 
shows  conclusively  a  causal  connec- 
tion between  the  two  factors.  It  is 
interesting  to  find,  however,  that, 
generally  speaking,  the  larger  the  ex- 
penditures for  advertising  in  relation 
to  sales,  the  greater  is  the  reduction 
in  expenses  in  relation  to  sales. 

In  Tables  67  to  74  and  176  to  183, 
inclusive,  of  the  text,  stores  are  clas- 
sified according  to  the  method  by 
which  salesmen  are  compensated. 
The  purpose  of  these  tables  is  to  de- 
termine the  relationship,  if  any,  be- 
tween the  amounts  of  selling  expense 
and  the  methods  by  which  salesmen 
are  compensated.  Generally  speak- 
ing, two  conclusions  result  from  this 
analysis :  First,  when  all  the  evidence 
is  considered,  stores  which  pay  their 
salesmen  a  bonus  show  higher  total 
selling  expense  and  wages  and  sal- 
aries than  do  those  which  pay  no 
bonus.  Second,  stores  in  which 
salesmen  are  paid  on  a  salary  and 


commission  basis  have,  on  the  whole, 
lower  total  selling  expense  and  wages 
and  salaries  than  do  those  which  use 
straight  salaries  alone.  The  reader 
is  advised  to  consult  the  tables  and 
the  discussion  relating  to  them  for  a 
fuller  statement  of  the  evidence  to 
the  above  effect. 

In  the  final  section  of  the  text, 
stores  are  classified  according  to  the 
relative  rates  of  profit  per  $100  total 
net  sales  which  they  had  in  1919.  For 
the  stores  classified  in  this  form,  the 
amounts  of  selling  expense,  of  total 
operating  expense,  of  gross  margin, 
and  of  cost  of  merchandise  sold  have 
been  determined.  Generally  speak- 
ing, the  conclusion  which  is  reached  is 
as  follows:  The  greater  the  relative 
rate  of  profit,  the  smaller  the  cost  of 
merchandise  sold,  the  total  operating 
expense  and  the  selling  expense,  and 
the  larger  the  gross  margin. 

In  the  introductory  paragraph  a 
plea  is  made  for  the  reader  not  to 
content  himself  with  a  hasty  perusal 
of  the  Summary.  Care  has  been  taken 
throughout  the  entire  analysis  faith- 
fully to  present  the  facts  as  shown  by 
store  records  and  the  Bureau  is 
anxious  that  the  case,  as  presented 
in  full,  should  be  understood  by  those 
who  are  interested  in  the  results. 


33 


III.     SELLING    EXPENSE    AND    EXPENSE    RATIOS    IN    CLOTHING 

STORES 


The  questionnaire  used  by  the 
Bureau  of  Business  Research  in  co- 
operation with  the  National  Associa- 
tion of  Retail  Clothiers  in  the  study 
of  Costs,  Merchandising  Practices, 
Advertising  and  Sales  in  the  Retail 
Distribution  of  Clothing*  provided 
for  expenses  to  be  reported  under 
four  headings:  rent,  wages  and  sal- 
aries, advertising,  and  general  ex- 
pense. These  different  elements  of 
expense  have  been  fully  analyzed  in 
the  Bureau 's  study  referred  to  above. 
It  is  unnecessary  here  to  describe 
either  the  method  employed  or  the 
results  obtained. 

Partly  as  a  necessary  step  in  the 
analysis  of  expenditures  under  the 
above  headings  and  partly  as  an  edit- 
ing process  preliminary  to  analysis, 
the  expenses  reported  were  dis- 
tributed according  to  a  classification 
in  which  selling  expense  plays  an  im- 
portant part.  It  is  with  the  analysis 
of  expenditures  classified  in  this  form 
that  this  study  deals. 

"Selling  expense,"  as  used  herein, 
includes  the  wages  and  salaries  of 
salesmen  and  such  part — as  nearly 
as  could  be  determined — of  the  sal- 
aries of  proprietors  who  gave  part 
of  their  time  to  selling,  as  should 
properly  be  so  charged.  It  also  in- 
cludes expenditures  for  bushelling, 
for  wrappings  and  containers,  for  de- 
livery expense,  and  all  expenditures 
for  advertising,  including  the  salaries 

*  Prentice-Hall,  Inc.,  New  York  City. 


of  employees  such  as  window  trim- 
mers and  advertising  men. 

Such  portions  of  selling  expense  as 
are  separately  discussed  below  are 
fully  defined.  For  present  purposes, 
the  above  definition  will  suffice  to  in- 
dicate what  is  meant  by  "selling  ex- 
pense." 

1. — SELLING  EXPENSE  FOR  CLOTHING 
STORES  CLASSIFIED  BY  YEARS,  BY 
SIZE,  AND  BY  LOCATION. 

For  each  of  the  years  1919,  1918, 
and  1914,  the  records  of  154  stores 
are  available  for  study,  while  for  1919 
alone,  use  is  made  of  the  records  of 
303  stores.  The  experience  of  this 
larger  group  is  treated  separately,  in- 
asmuch as  it  is  desirable  in  the 
analysis  to  have  as  complete  a 
sampling  of  stores  as  possible. 

The  method  of  presenting  the  data 
is  similar  to  that  followed  in  the 
Bureau's  study  of  Costs,  Merchandis- 
ing Practices,  Advertising  and  Sales 
in  the  Retail  Distribution  of  Clothing, 
expense  items  being  expressed  in 
units  of  sales,  total  expense,  or  other- 
wise as  the  case  may  be. 

A. — Yearly  Amounts  of  Selling  Ex- 
pense per  $100  of  Total  Net  Sales 
and  per  $100  of  Total  Expense, 
1919,  1918,  and  1914. 

The  average  amounts  of  selling  ex- 
pense in  terms  of  sales  for  the  154 
stores  under  consideration  for  the 
years  1919,   1918,   and  1914  are  set 


34 


TABLE  1 


TOTAL  NET  SALES,  SELLING  EXPENSE,  AND  AMOUNT  OP  SELLING  EXPENSE  PER  $100 
OF  TOTAL  NET  SALES,  FOR  154  IDENTICAL  STORES,  1919,  1918,  AND  1914 


Nujnber 

of 
Store- 
years 

Total 
Net  Sales 

Total 
Selling 
Expense 

Selling  Expense  per  OlOO  of  Total 

Nat  Sales 

Years 

Amount 

Per  Cent. 

Graphic 
3     20     40     60      80   100   120 

Actual 

Total 

462 

$44,835,499 

$4,851,112 

$10.82 

(Average ) 

; 

1919 
1918 

154 
154 
154 

20,892,764 

14,714,515 

9,228,220 

2,182,027 
1,609,671 
1,059,414 

10.44 
10.94 
11.48 

96,5 
101.1 
106.1 

1914 

Average  tlO.82 

out  in  Table  1.  In  1914,  $11.48  out 
of  every  $100  of  total  net  sales  was 
expended   for   selling   purposes.     In 

1918,  the  amount  was  $10.94,  and  in 

1919,  $10.44.  That  is,  between  1914 
and  1918,  and  1914  and  1919,  selling 
expense  in  terms  of  total  net  sales  de- 
creased, the  percentage  of  change  be- 
tween 1914  and  1918  being  4.7,  and 
between  1914  and  1919,  9.1. 

These  amounts  and  percentages  of 
change  characterize  identical  stores. 
During  the  period  in  question,  both 


the  sales  and  selling  expense  of  the 
stores  increased.  Sales,  however,  in- 
creased more  rapidly  than  selling 
expense  with  the  result  that  selling 
expense  in  terms  of  sales  decreased. 
These  relationships  are  shown  in 
Table  2. 

It  is  also  of  interest  for  the  154 
stores  to  compare  the  relations  of  the 
selling  expense  to  the  total  expense 
of  doing  business.  In  1914  the  pro- 
portion of  total  expense  attributable 
to  selling,  as  defined  above,  was  $48.86. 


TABLE  2 

AVERAGE  AMOUNT  AND  PER  CENT.  INCREASE  OR  DECREASE  OF  TOTAL  NET  SALES  AND 

SELLING     EXPENSE     PER     STORE,     AND     AVERAGE     AMOUNT     OF     SELLING 

EXPENSE  PER  $100  OF  TOTAL  NET  SALES,  FOR  154  IDENTICAL 

STORES,    1919,    1918,    AND    1914 


AvQrago  Amotint  of  Ttatal  Net  Salea 
per  Store 

Average  Ano-mt  of  Sallina 
Expense  per  Store 

Average  Arwunt  or  Selling  bxpaa«a 
per  $100  of  Total  Net  Salea 

Yoora 

Anount 

Per  Cent.    Increase  over   1914 

AsKunt 

Per  Cent.    Increase  over  1914 

Anount 

Per  Cent.   Decrease   from  1914 

1                       Oraphlo 
A«taa  1 

0      20      40      60      BO    100    120    14 

1                   Crapblo 
Aetnftl  1 

0      20      40      60      80    100    12C 

1                Graptilc 
Actual 

0      20      40      60      90    100 

1919 
19  IS 
19X4 

1155,667 
95,548 
59,924 

126.4 
59.5 

114,169 
10,452 
6.879 

lOS.O 
51.9 

$10.44 
10.94 
11.48 

9.1 
4.7 

-^ 

: 

35 


By  1918  this  amount  had  increased 
to  $49.63,  and  by  1919  to  $51.06. 
Stated  in  another  way,  essentially 
$50  out  of  every  $100  of  total  expense 
is  attributable  to  selling. 

Table  3  shows  that  the  average 
total  expense  of  these  stores  increased 
between  1914  and  1918  by  49.6  per 
cent,  and  between  1914  and  1919  by 
97.1  per  cent.  At  the  same  time,  their 
selling  expense  increased  between 
1914  and  1918  by  51.9  per  cent,  and 
between  1914  and  1919  by  106.0  per 
cent.     When   selling   expense   is   ex- 


the  stores  are  classified  by  size.  Table 
4  shows  the  relation  between  selling 
expense  and  total  net  sales,  and  Table 
5,  the  relation  between  selling  ex- 
pense and  total  expense  for  the  154 
stores  classified  by  size.  The  amounts 
of  selling  expense  per  $100  of  total 
net  sales  decreased  between  1914  and 
1918,  and  between  1918  and  1919  for 
each  group  of  stores;  the  decrease 
being  most  noticeable  for  stores  with 
sales  less  than  $40,000  and  for  those 
with  sales  between  $40,000  and 
$80,000. 


TABLE  3 

AVERAGE  AMOUNT  AND  PER  CENT.  INCREASE  OR  DECREASE  OF  TOTAL  EXPENSE  AND 

OF  SELLING  EXPENSE  PER  STORE,  AND  AMOUNT  OF  SELLING  EXPENSE 

PER  $100  OF  TOTAL  EXPENSE,  FOR  154  IDENTICAL  STORES, 

1919,  1918,  AND  1914 


0   20   40   60   80  100 


^ 


0  gg  49  6(1  ep  IPC  ISO 


0  gp  40  60  60  IPp 


1S19 
191B 
1914 


427,749 
21,059 
14,060 


tl4,16e 
10,452 
6,679 


106.0 
51.9 


tS1.06 
49.63 


pressed  as  a  proportion  of  total  ex- 
pense, it  is  found  that  there  was  an 
increase  of  1.6  per  cent,  between  1914 
and  1918  and  of  4.5  per  cent,  between 
1914  and  1919. 

B. — Yearly  Amounts^  of  Selling  Ex- 
pense per  $100  of  Total  Net 
Sales  and  Per  $100  of  Total  Ex- 
pense, for  Stores  in  1919,  1918, 
and  1914,  Classified  by  Size. 

What  is  true  for  the   154  stores 
treated  as  a  total  is  also  true  when 


The  direction  of  change  from  year 
to  year  in  the  relation  of  selling  ex- 
pense to  total  expense,  when  the  stores 
are  classified  by  size,  is  not  so  evident. 
For  the  stores  with  annual  sales  less 
than  $80,000,  the  amounts  decreased 
between  1914  and  1918,  and  1918  and 
1919,  while  for  those  with  sales  of 
$80,000  and  over  there  is  an  uncer- 
tainty as  to  direction,  the  average 
amount  in  1918  being  lower  than  the 
amount  in  either  1914  or  1919,  for  the 
group  with  sales  of  $80,000  to  $180,- 
000,  and  higher  than  the  amounts  for 


36 


TABLE  4 

TOTAL  NET  SALES,   SELLING   EXPENSE,   AND  AMOUNT  OF  SELLING  EXPENSE  PER  $100 

OF  TOTAL  NET  SALES,  FOR  154  IDENTICAL   STORES  CLASSIFIED 

BY   SIZE,    1919,    1918,    AND    1914 


Selling  Expenea  per  flOO  of  Total  Net  Sales 


Average  $10.82 


these  years  for  the  stores  with  sales 
of  $180,000  and  over. 

C. — Yearly  Am&unts  of  Selling  Ex- 
pense per  $100  of  Total  Net  Sales 
and  per  $100  of  Total  Expense, 
for   Stores   in   1919,   1918,    and 


1914,  Classified  by  Size  of  City  in 
Which  Located* 

It  is  of  interest  to  compare  the 
relations  of  selling  expense  to  sales 
and  to  total  expense,   from  year  to 

*  Population  figures  are  for  1920. 


37 

44392 


TABLE  5 

TOTAL  EXPENSE,  SELLING  EXPENSE,  AND  AMOUNT  OF  SELLING  EXPENSE  PER  $100  OP 

TOTi\L   EXPENSE,   FOR   154  IDENTICAL   STORES   CLASSIFIED 

BY    SIZE,    1919,    1918,    AND    1914 


Years 

Number 

of 
Store- 
years 

Total 
Expense 

Total 
Selling 
Expense 

Selling  Expense  per  ^100  of  Total  Expense 

Total 
Het  Sales 
(m  OOO's) 

Ap.oijmt 

C 

Per  Cent. 

Graphic          Actual 
)   20   40   60  80  100  120 

Total 
(Avercigc) 

452 

59,684,915 

$4,351,112 

550.09 

^^^   ; 

100.0 

Total 

1919 
1918 
1914 

154 
154 
154 

4,273,325 
3,243,123 
2,168,367 

2,182,027 
1,609,671 
1,059,414 

51.06 
49.63 
48.96 

101.9 
99.1 
97.5 

(Average) 

Total 
(Average) 

129 

741,391 

304,954 

41.13 

82.1 

Dndar  $40 

1919 
1918 
1914 

14 
42 
73 

76,237 
248,315 
416,829 

29,018 
101,621 
174,315 

33.06 
40.92 
41.82 

76.0 
81.7 
83.5 

Total 
(Average) 

172 

1,981,375 

913,357 

46.10 

92.0 

; 

1919 
1918 
1914 

57 
63 
52 

566,182 
755,488 
659,705 

246,207 
345,293 
321,857 

43.49 
45.70 
48.79 

86.8 

91.2 
97.4 

1 

Total 
(Average) 

117 

2,897,244 

1,491,301 

51.49 

10?. 8 

teo  to  $180 

1919 
1913 
1914 

53 
35 

24 

1,361,844 
905,972 
629,528 

719,436 
445,138 
327,227 

52.83 
49.14 
51.98 

105.5 

98.1 

103.8 

i 

Total 
(Average ) 

44 

4,064,815 

2,141,000 

52.  G7 

105.2 

tlBO  &  over 

1919 
1919 
1914 

25 

14 

5 

2,269,062 
1,333,446 

462,305 

l,187,36e 
717,619 

236,015 

52.33 
53.82 
51.05 

10  A.  5 
107.4 

^^^^^ 

Average  $50.09 


year,  for  all  the  stores,  when  they  are 
classified  by  the  size  of  the  city  in 
which  they  are  located.  Such  com- 
parisons are  shown  in  Tables  6  to  9, 
inclusive. 

One  hundred  and  fifteen  of  the  154 


stores  are  located  in  cities  with  popu- 
lation of  less  than  40,000.  Between 
1914  and  1918  the  sales  of  these  stores 
increased  by  49.4  per  cent,  and  be- 
tween 1914  and  1919,  by  109.4  per 
cent.      Corresponding    to    these    in- 


38 


creases  in  sales,  were  increases  of 
40.8  per  cent,  and  85.4  per  cent.,  re- 
spectively, in  selling  expense.  When 
the  amounts  of  selling  expense  are 
expressed  in  terms  of  total  net  sales, 
they  are  found  to  have  decreased  be- 
tween 1914  and  1918  by  5.8  per  cent. 
and  between  1914  and  1919  by  11.5 
per  cent. 

The  percentages  of  increase  in  sales 
were  noticeably  larger  between  1914 
and  1918,  and  between  1918  and  1919 
for  the  39  stores  located  in  cities  with 
population  of  40,000  and  over  than 
for  those  in  the  small  cities.  The  per- 
centages of  increase  in  selling  ex- 
pense, however,  were  also  larger,  the 
result  being  that  the  percentages  of 
decrease  in  selling  expense  per  $100 
of  total  net  sales  were  smaller  for  the 
stores  in  the  large  cities  than  for 
those  in  the  small  cities  for  both  1918 
and  1919  when  compared  with  1914. 


Relatively,  therefore,  the  advantage 
in  the  increase  in  sales  accruing  to 
the  stores  in  the  large,  over  those 
located  in  the  small  cities,  is  more 
than  compensated  for  by  the  increase 
in  selling  expense. 

"When  selling  expense  is  expressed 
in  relation  to  total  expense  for  these 
same  stores,  as  in  Table  7,  a  somewhat 
different  story  is  told.  For  the  115 
stores  in  the  small  cities  the  percent- 
age of  increase  in  the  amount  of  sell- 
ing expense,  as  between  1914  and 
1918,  was  almost  precisely  the  same 
as  that  in  total  expense,  while  be- 
tween 1914  and  1919  it  exceeded  that 
in  total  operating  expense.  When 
the  amounts  of  selling  expense  are 
expressed  in  relation  to  total  expense, 
the  result  is  that  between  1914  and 
1918  the  amount  decreased  by  0.1  per 
cent,  and  between  1914  and  1919  in- 
creased by  3.6  per  cent. 


TABLE  6 

RELATION   OF    SELLING   EXPENSE    TO    TOTAL    NET    SALES,    FOR    154    IDENTICAL,   STORES 
CLASSIFIED   BY    SIZE   OF    CITY,    1919,    1918,    AND    1914 


size 

of 

City 

iin  OOO'e) 

Years 

Number 

of 
Stores 

Het  Sales 

Selling  Expense 

Total 

Average 
per 

Ajnount 
Store 

Total 

Average 
per 

Amoxint 
Store 

Per  $100  of  Total 
Net  Sales 

Amount 

Per  Cent. 
Increase 
over  1914 

Amount 

Per  Cent. 
Increase 
over  1914 

Amount 

Per  Cent. 
Decrease 
from  1914 

1919 

154 

120,992,764 

tl35,667 

126.4 

#2,182,027 

114,169 

106.0 

»10.44 

9.1 

Total 
(Average ) 

191B 

154 

14,714,515 

95,549 

59.5 

1,609,671 

10,452 

51.9 

10.94 

4.7 

1914 

154 

9,228,220 

59,924 

1,059,414 

6,879 

11.48 

1919 

115 

10.005,585 

87,005 

109.4 

696,865 

7,799 

85.4 

8.96 

11.5 

'Onder 

1918 

115 

7,156,283 

62,055 

49.4 

680,787 

5,920 

40.8 

9.54 

5.8 

1914 

U5 

4,777,138 

41,540 

483,712 

4,206 

10.13 

1919 

59 

10,887,179 

279,158 

144.6 

1,285,164 

32,953 

123.2 

U.80 

8.7 

40  and 
ever 

191B 
1914 

S9 
S9 

7,578,232 
4,451,062 

194,314 
114.130 

70.S 

928,884 
575,702 

23,818 
14,762 

61.3 

12.26 
12.93 

5.2 

39 


Similar,  but  larger,  percentages  of 
increase  in  total  and  in  selling  ex- 
penses were  experienced  for  the  39 
stores  located  in  the  large  cities.  Be- 
tween 1914  and  1918,  the  total  oper- 
ating expense  increased  57.0  per  cent, 
and  the  total  selling  expense,  61.3  per 
cent.  Between  1914  and  1919  the 
same  expenses  increased,  respectively, 
112.7  and  123.2  per  cent.    The  result 


cities,  when  expressed  in  terms  of 
sales,  decreasing  more,  and  when  ex- 
pressed in  terms  of  total  expense,  in- 
creasing less  than  the  amounts  for  the 
stores  in  the  large  cities. 

The  relations  of  the  amounts  of 
selling  expense  to  total  net  sales  and 
to  total  operating  expense,  respec- 
tively, for  the  154  stores  classified  by 
the  size  of  the  city  in  which  they  are 


TABLE  7 

RELATION    OF    SELLING    EXPENSE    TO    TOTAL    EXPENSE,    FOR    154    IDENTICAL    STORES 
CLASSIFIED   BY    SIZE   OF    CITY,    1919,    1918,    AND    1914 


of 

City 
(la  OOO's) 

Total  Expense 

Selling  E:^p 

31130 

Years 

of 
StorcQ 

Amount 

Avorage  Amcunt 
per  Stora 

Total 

Average 
per 

Amount 
Store 

Per  *100  of  Total 
Expense 

Aco'ont 

Per  Cont. 
over  1914 

Amount 

Per  Cent. 
Increase 
over  1914 

Axoount 

Par  Cent. 
Increase  or 
Decreaaa 
from  1914 

1919 

154 

$4,273,325 

§27,749 

97.1 

?,2,lfl2,0?7 

fj.4,169 

106.0 

$51 .06 

•4.5 

Total 
(Aver.-co) 

1918 
1914 

154 
154 

3,243,123 
8,168,369 

21,059 
14,080 

49.  C 

1,C03,C71 
1,059,414 

10, '.52 
5,879 

51.9 

49.63 
48.86 

*1.6 

1919 

115 

1,793,459 

15,595 

73.9 

896,863 

7,799 

85.4 

50.01 

♦3.6 

Pndar 

1918 

lis 

1,412,863 

12,286 

40.9 

660,787 

5,920 

4C.3 

43.18 

-0.1 

1914 

115 

1,002,412 

8,717 

483,712 

4,206 

48.25 

1919 

J9 

2,479,866 

63,506 

112.7 

1,285,164 

32,953 

123.2 

51.82 

.4.9 

40   and 

1918 

59 

1,830,260 

46,930 

57. 0 

928,884 

23,813 

61.3 

50.75 

♦2.8 

1914 

39 

1,155,955 

29,896 

575,702 

14,762 

49.38 

of  these  increases  is  that  selling  ex- 
pense, measured  in  terms  of  total 
operating  expense,  increased  2.8  per 
cent,  between  1914  and  1918,  and  4.9 
per  cent,  between  1914  and  1919. 

When  Tables  6  and  7  are  compared, 
it  is  of  interest  to  observe  for  both 
groups  of  stores  that  the  amounts  of 
selling  expense  in  terms  of  sales 
relatively  decreased,  and  in  terms  of 
total  expense  relatively  increased,  the 
amounts  for  the  stores  in  the  small 


located,  are  graphically  shown  for 
each  of  the  years  in  Tables  8  and  9. 
In  Table  8  the  amounts  are  expressed 
in  terms  of  total  net  sales.  While  for 
the  three  years  combined,  the  average 
amount  of  selling  expense  for  each 
$100  of  sales  is  $10.82  for  the  entire 
group  of  stores,  the  amount  is  $9.40 
for  the  stores  in  the  small  cities,  and 
$12.17  for  those  in  the  large  cities. 
That  is,  the  amount  for  the  stores  in 
the  small  cities  is  86.9  per  cent.,  while 


40 


that  for  the  stores  located  in  the  large 
cities  is  112.5  per  cent,  of  the  average 
for  the  entire  group.  From  1914  to 
1919  the  amounts  for  the  stores  in 
both  city-groups  decreased,  the  extent 
of  the  change  being  relatively  larger 


increased  from  1914  to  1918,  and  1914 
to  1919.  The  changes,  however,  are 
small,  the  amounts  for  the  stores  dif- 
ferently located  very  closely  approxi- 
mating the  average  for  the  entire 
group. 


TABLE  8 

TOTAL  NET  SALES,   SELLING  EXPENSE,   AND  AMOUNT  OF  SELLING  EXPENSE  PER  $100 

OF  TOTAL  NET  SALES,  FOR  154  IDENTICAL  STORES  CLASSIFIED 

BY  SIZE  OF  CITY,  1919,  1918,  AND  1914 


Size 

Years 

Duobep 

of 
Store- 
years 

Total 
Net  Sales 

Total 
Selling 
E.-'.pense 

Selling  Expense  per  $100  of  Total 
Nat  Sales 

of 

City 

(In  OOO's) 

Amormt 

Per  Cent. 

Graphic 
D   20   40   60   80  100  120 

Actual 

Total 
(Average) 

463 

$44,835,499 

$4,351,112 

110.82 

100.0 

Total 

1919 
1918 
1914 

154 
154 
154 

20,892,764 

14,714,515 

9,228,220 

2,182,027 
1,609,671 
1,059,414 

10.44 
10.94 
11..48 

96.5 
101.1 
106.1 

(Average) 

Total 
(Average) 

345 

21,919.006 

2,061,362 

9.40 

: 

Under 

1919 
1913 
1914 

115 
115 
115 

10,005,595 
7,136,283 
4,777,138 

896,363 
680,737 
483,712 

8.96 
9.54 

10.13 

82.3 

40 

: 

38.2 

: 

93.6 

: 

Total 
(Average) 

117 

22,916,493 

2,789,750 

12.17 

112.5 

: 

40  and 

1919 
1913 
1914 

39 
39 
39 

10,387,179 
7,573,232 
4,451,082 

1,285,164 
928,884 
575,702 

11.80 
12.26 
12.93 

109.1 
113  3 

over 

! 

Average  $10.82 


for  the  stores  in  cities  with  popula- 
tion under  40,000.  It  is  to  be  noted 
that,  absolutely,  the  differences  are 
almost  identical. 

When  selling  expense  is  expressed 
in  terms  of  total  operating  expense, 
the  amounts  for  stores  in  the  two 
city-groups,  with  one  slight  exception, 


D. — Yearly  Amounts  of  Selling  Ex- 
pe7ise  per  $100  of  Total  Net 
Sales  and  per  $100  of  Total  Ex- 
pense, far  Stores  Classified  hy 
Size  and  by  Size  of  City  in 
Which  Located*  1919,  1918,  and 
1914. 
*  Population  figures  are  for  1920. 


41 


TABLE  9 

TOTAL   EXPENSE,    SELLING   EXPENSE,    AND   AMOUNT    OF   SELLING    EXPENSE   PER   $100 

OF    TOTAL    EXPENSE,    FOR    154    IDENTICAL    STORES    CLASSIFIED 

BY  SIZE  OF  CITY,  1919,  1918,  AND  1914 


Size 

Ye-ars 

Ilijuiber 

of 
Store- 
years 

Total 
Expense 

Total 
Selling 
Expense 

Selling  Expense  per  flOO  of  'Potal  Expense 

of 

City 

(in  000' s) 

Amount 

( 

Per  Cent. 

Graphic       1  ^^t,^^^ 
3   20   40   60  80  100  120 

Total 
(Average) 

462 

$9,684,815 

3.4,851,112 

$50.09 

Total 

1919 
1S18 
1914 

154 
154 
154 

4,275,525 
5,245,125 
2,168,567 

2,182,027 
1,609,671 
1,059,414 

51.06 
49.63 
48.66 

101.9 
99.1 
97.5 

(Average ) 

^^^^^1 

: 

Total 
(Average) 

545 

4,208,754 

2,061,362 

48.98 

: 

97.8 

] 

1919 
1918 
1914 

115 
115 
115 

1,793,459 
1,412,065 
1,002,412 

896,865 
680,787 
483,712 

50.01 
4S.18 
48.25 

99. 8 
96.2 
96.3 

40 

1 

1 

Total 
(Average) 

117 

5,476,081 

2,789,750 

50.94 

101.7 

: 

40  and 

1919 
1918 
1914 

59 
59 
59 

2,479,866 
1,850,260 
1,165,955 

1,285,164 
928,384 
575,702 

51.82 
50.75 
49.58 

103.5 

101.3 

CO. 6 

over 

■ 

: 

; 

Average  $50.00 


Two  groups  of  stores  are  available 
for  the  study  of  the  relation  of  selling 
expense  to  sales  for  stores  of  different 
size.  The  first — 303  stores — covers 
the  year  1919  alone;  the  second — 154 
stores — applies  to  each  of  the  years 
1919,  1918,  and  1914.  In  1919,  based 
upon  the  records  of  303  stores,  with 
total  sales  of  $36,193,718  and  selling 
expense  of  $3,595,401,  the  ratio  of 
selling  expense  to  sales  is  $9.93.  In 
other  words,  it  costs  $9.93  in  selling 
expense,  as  defined,  to  sell  $100  worth 
of    goods.     This    amount,    however, 


varies  noticeably  for  stores  of  differ- 
ent size.  For  the  45  stores  with  an- 
nual sales  of  less  than  $40,000  the 
amount  is  $6.46  and  for  the  43  stores 
with  sales  of  $180,000  and  over,  it  is 
$11.45.  These  amounts,  respectively, 
apply  to  stores  with  the  smallest  and 
the  largest  annual  sales.  An  inspec- 
tion of  the  total  section  of  Table  10 
reveals  the  unmistakable  tendency  for 
the  ratios  of  selling  expense  to  total 
net  sales  to  increase  as  the  stores  in- 
crease in  size.  This  table,  however, 
refers  solely  to  1919.    When  another 


42 


group  of  stores  is  considered  for  the 
same  year,  as  in  Table  12,  a  like  con- 
dition is  observed.  The  amount  of 
selling  expense  per  $100  of  total  net 
sales  for  this  group  as  a  total  is  some- 
what   larger,    but    the    direction     of 


and  size.  The  total  sections  of  these 
tables  show  the  amounts  of  selling 
expense  per  $100  of  total  net  sales, 
first  for  the  three  years  1919,  1918, 
and  1914,  combined,  and  second,  for 
the  respective  years.     For  the  com- 


TABLE  10 

TOTAL  NET  SALES,   SELLING  EXPENSE,  AND  AMOUNT  OF   SELLING  EXPENSE  PER  $100 
OF  TOTAL  NET  SALES,  FOR  STORES  CLASSIFIED  BY  SIZE  OF  CITY  AND  STORE,   1919 


Size 

of 
City 

(m  000*3) 


Total 

(Average) 


Under 
40 


40  and 
over 


Classified 

Total 
Jlet  Sales 
(In  coo's) 


Total 
(Aver&cc) 


Under  $40 
$40  to  S80 
580  to  5180 

$180  &  over 


Total 
(Avernge) 


Under  $40 
340  to  S80 
^0  to  $180 

JlSO  Jc  over 


Total 
(Average) 


Under  $40 
t40  to  jeo 
$80  to  $180 

$180  &.  over 


Jlumbor 

of 
Stores 


45 
113 
102 

43 


44 
99 
70 
12 


Total 
Jlet  Sales 


$36,193,718 


1,399,886 

6,500,336 

11,986,362 

16,307,134 


17, 978, 319 


1,372,066 
5,610,593 
8,138,365 
2,857,295 


18,215,399 


27,820 

889,743 

3,847,907 

13,449,839 


Total 
Selling 
Expense 


$^3,  595,  401 


90,453 

463,566 

1,174,364 

1,867,013 


1,490,026 


86,813 
386,503 
72^,670 
294*040 


2,105,375 


3,640 

77,065 

451,694 

1,572,978 


Selling  Expense  per  $100  of 
Net  Sales 


$9.93 


6.46 

7.13 

9.80 

11.45 


8.29 


6.33 
6.89 

e.ee 

10.29 


11.56 


13.08 

8.66 

11.74 

11.70 


Graphic 


100.0 


65.1 

71.8 

98.7 

115.3 


83.5 


63.7 

69.4 

89.4 

103.6 


116.4 


131.7 

87.2 

118.2 

117.8 


Average  $9.93 


change  in  the  amounts  from  store- 
group  to  store-group  nevertheless  fol- 
lows closely  that  observed  for  the  303 
stores. 

In  Tables  11  to  14,  inclusive,  154 
stores  are  classified  by  years,  location, 


bined  years,  the  average  amount  of 
selling  expense  is  $10.82.  For  the 
smallest  stores  it  is  $8.49  and  for  the 
largest,  $12.05,  the  amounts  increas- 
ing as  the  stores  increase  in  size. 
Such  a  condition  is  observed  also  for 


.43 


TABLE  11 

TOTAL  NET  S^VLES,   SELLING  EXPENSE,   AND   AMOUNT  OF  SELLING  EXPENSE   PER  $100 

OF   TOTAL   NET   SAI.ES,   FOR   154  IDENTICAL   STORES   CLASSIFIED   BY   SIZE 

OF   CITY   AND   STORE,    1919,    1918,    AND    1914,    COMBINED 


Sizs 

of 

,  City,  , 

Classified 

Total 
Net  Sales 
(In  OOO'a) 

Number 

of 
Store- 
yeare 

Total 
Net  Sales 

Total 
Selllnc 
Expense 

Soiling  Expense  per  $100  of 
To' el  Nat  Sales 

Amount 

( 

Par  Cent. 

Graphic 

Actual 
3   20   40   60   80  100  120 

!    Total 

462 

$44,835,499 

$4,851,112 

$10.82 

100.0 

(Average) 

i^/t^^    «iin 

129 

172 

117 

44 

3,590,553 

9,775,007 

13,695,639 

17,774,300 

304,954 

913,357 

1,491,301 

2,141,000 

8.49 

9.34 

10.89 

12.05 

78.5 
86.3 
100.6 
111.4 

Total 
(Aver=.^c;   •  ^40  to  $80 

^0  to  $180 

$1S0  Je  over 

i 

Total 
(AveraE?) 

345 

21,919,006 

2,061,362 

9.40 

86.9 

! 

Ucder 
40 

DivJer  i40 
$40  to  {^0 
£80  to  JI8O 

$130  li.   over 

121 

136 

77 

9 

3,317,333 
7,650,532 
8,832,022 
2,119,114 

276,723 
670,140 
892,563 
221,936 

3.34 

8.76 

10.11 

10.47 

77.1 

81.0 

I 

; 

96.8 

1 

Total 
(Average ) 

117 

22,916,493 

2,789,750 

12.17 

112.5 

; 

Under  $40 
|4C  to   SSO 
#80  to  $180 

$180  &  over 

8 
34 

40 
35 

273,215 

2,124,475 

4,863,617 

15,655,186 

23,231 

243,217 

599,238 

1,919,064 

10.33 
11.45 
12.32 
12.26 

95.5 
105.8 

40  and 
over 

; 

Average  $10.82 


each  of  the  years  when  treated  sepa- 
rately. 

In  1919,  the  average  amount  was 
$10.44,  in  1918,  $10.94,  and  in  1914, 
$11.48.  That  is,  from  year  to  year, 
the  amounts  decreased  as  is  shown 
graphically  in  Table  1.  Moreover, 
the  amounts  decreased  from  year  to 
year  for  each  group  of  stores. 

Attention  should  be  called  to  the 
fact  that  store  identity  is  not  main- 
tained throughout  the  various  years 
in  any  of  the  sales-groups.    The  rate 


at  which  sales  increase  for  the  respec- 
tive stores  varies  so  that  from  year  to 
year  each  group  does  not  necessarily 
contain  the  same  stores  nor  the  same 
number  of  stores. 

An  analysis  of  the  relation  of  sell- 
ing expense  to  total  expense  may  also 
be  made  for  the  154  stores,  classified 
by  size.  This  is  done  in  Tables  15  to 
18,  inclusive.  It  is  thought  to  be  suf- 
ficient to  compare  identical  stores  for 
this  purpose. 

Based  upon  the  three-year  experi- 


44 


TABLE  12 

TOTAL  NET  SALES,   SELLING  EXPENSE,   AND   AMOUNT  OF   SELLING  EXPENSE  PER  $100 

OF    TOTAL    NET    SALES,    FOR    154    STORES    CLASSIFIED    BY 

SIZE  OF   CITY    AND  STORE,    1919 


Size 
of 

City 

Classified 

Total 
Net  Sales 
(In  OOO'a) 

HumLer 

of 
Stores 

Total 
Net  Sales 

Total 
Selling 
Expenee 

Selling  Expense  per   *100  of  Total  Net  Sales 

Anoijnt 

Fer  Cent. 

(In  000*3) 

Graphic 

Actual 
3      20      40      60      80   100    120   140 

Total 
(Average ) 

154 

$20,892,754 

$2,182,027 

$10.44 

100.0 

Total 
(Average) 

Dnder  ^40 
$40   to     580 
{80   to   *180 

Siao  J:  over 

14 
57 
53 
25 

428,714 

3,222,458 

6,856,815 

10,374,767 

29,018 

245,207 

719,436 

1,187,356 

6.77 
7.64 
lO.ifl 
11.44 

64.3 
73.2 

100.4 
103.6 

Total 
(Average) 

115 

10,005,585 

895,853 

8.96 

85.8 

Under 
40 

Under  $40 
^10  to     S80 
§30  to  $180 

Sl80  S:  over 

14 
51 
44 
6 

428,714 
2,836,747 
5,255,410 
1,434,714 

29,018 
211,678 

509,410 
146,757 

6.77 
7.46 
9.69 
9.38 

64.3 
71. S 
92.8 
94.6 

; 

i 

Total 
(Average) 

39 

10,887,179 

1,235,164 

11.80 

113.0 

• 

40   and 
over 

Onder  Uo 
^  to    Jao 

$80   to   $180 
$180  &  over 

6 
14 
19 

385,721 
1,611,405 
8,890,053 

34,529 

210,026 

1,040,609 

8.95 
13.03 
11.71 

85.7 
124.8 
112.2 

Average  $10.44 


enee  of  154  identical  stores,  the  aver- 
age amount  of  selling  expense  per 
$100  of  total  expense  is  $50.09.  In 
1919  it  was  $51.06,  in  1918,  $49.63, 
and  in  1914,  $48.86.  That  is,  the 
amounts  of  selling  expense  per  $100 
of  total  expense  increased  between 
1914  and  1918,  and  1918  and  1919. 
When  the  stores  are  considered  with 
respect  to  size  for  the  combined  and 
for  each  of  the  years,  the  amounts  in- 
crease as  the  stores  increase  in  size. 
For  the  three  years   combined,   the 


amount  for  the  stores  with  annual 
sales  under  $40,000  is  $41.13,  while 
for  those  with  annual  sales  of  $180,- 
000  and  over  it  is  $52.67.  Relatively, 
the  amount  for  the  small  stores  is 
82.1  per  cent.,  and  for  the  large  stores, 
105.2  per  cent,  of  the  average  for  all 
the  stores.  Between  these  limits,  the 
amounts  increase  as  the  stores  in- 
crease in  size. 

In  1919,  the  average  amount  of  sell- 
ing expense  per  $100  of  total  expense 
was  $51.06.     For  the  stores  having 


45 


TABLE  13 

TOTAL  NET  SALES,   SELLING  EXPENSE,   AND   AMOUNT  OP   SELLING  EXPENSE  PEE  $100 

OF    TOTAL    NET    S.VLES,    FOR    154    STORES    CLASSIFIED    BY 

SIZE   OF   CITY   AND   STORE,    1918 


Eire 

Classified 

Total 
l!et  Sales 
(In  coo's) 

number 

of 
Stores 

Total 
Not  Sales 

Total 
Selling 
Expense 

Selling  Expense  per  $100  of  Total 
net  Sales 

of 

City 

(in  CCO's) 

Aitoimt 

Fer  Cent. 

Graphic 

Actual 
)  20   40   60   80  100  120 

Total 
(Average ) 

154 

*14,714,515 

$1,609,671 

$10.94 

Dnder  $40 
$40  to  §80 
iSO  to  $180 

Sl80  &  over 

42 
63 
35 

14 

1,256,795 

3,662,794 
4,090,205 
5,704,723 

101,621 

354,203 
445,138 
717,619 

8.09 

9.43 

10.83 

12.58 

V^  9 

Total 
(Average ) 

: 

86.2 

, 

Total 
(Average ) 

115 

7,136,283 

680,787 

9.54 

i 

87.'' 

Ur.der 
40 

ttader  540 
J40  to  $80 
Sec  to  JI8O 

SI8O  &  over 

41 
49 
22 

r 

3 

1,2:1,199 

2,776,272 

2,504,412 

634,400 

99,513 
244,788 
261,307 

75,179 

8.15 

8.82 
10.43 
11.85 

74.5 

; 

95.3 
108.3 

Total 
(Average) 

39 

7,578,232 

928,884 

12.26 

40  and 

Dnder  340 

$40  to  3eo 

$80  to  $180 
$180  &  over 

1 
14 
13 
11 

35,596 

886,522 

1,585,791 

5,070,323 

2,108 
100,505 
183,831 
642,440 

5.92 
11.34 
11.59 
12.67 

^— 

54.1 

115.8 

Average   ClO.94 


annual  sales  under  $40,000  it  was 
$38.06  and  for  those  having  annual 
sales  of  $180,000  and  over,  $52.33. 
Similar  differences  for  stores  of  dif- 
ferent size  hold  for  the  other  years. 
The  graphic  parts  of  the  total  sections 
of  Tables  17  and  18  reveal  these  facts 
for  191 8  and  1914. 

In  the  discussion  of  the  relation  of 
selling  expense  to  sales  and  total  ex- 
pense for  stores  of  different  size,  no 
distinction  was  made  for  stores  ac- 
cording to  location.     A  classification 


providing  for  this  is  made  in  Tables 
10  to  18,  inclusive,  two  city-groups 
being  distinguished :  cities  with  popu- 
lation of  less  than  40,000  and  cities 
with  population  of  40,000  and  over. 

The  records  of  303  stores  for  1919 
are  available  for  the  analysis  of  the 
relation  of  selling  expense  to  total  net 
sales  for  stores  classified  by  both  size 
and  location.  Details  are  contained  in 
Table  10.  For  the  225  stores  located 
in  the  small  cities,  selling  expense 
constitutes  $8.29   per  $100   of  total 


46 


TABLE  14 

TOTAL  NET  SALES,   SELLING  EXPENSE,   AND  AMOUNT  OF  SELLING   EXPENSE  PER  $100 

OF    TOTAL    NET    SALES,    FOR    154    STORES    CLASSIFIED    BY 

SIZE  OF   CITY   AND   STORE,    1914 


Classified 

Total 
Met  Sales 
(In  OOO's) 

Number 

of 
Stores 

Total 
Met  Sales 

Total 
Selling 

Expense 

Selling  Expense  per  $100  of  Total  Hot  Sales 

S1Z9 
Of 

City 

Amount 
< 

Per  Cent. 

(In  OOO'a) 

Graphic 
)  20  40  60  80  100  120  14C 

Actual 

Total 
(Average) 

154 

$9,228,220 

$1,059,414 

$11.49 

100.0 

Total 
(Avar age) 

Dnder  $40 
$40  to  J80 
{80  to  $180 

$180  &  over 

73 

52 

24 

5 

1,905,044 
2,889,745 
2,738,621 
1,694,810 

174,315 
321,857 
327,227 
236,015 

9.15 
11.14 
11.95 
13.93 

79.7 
07.0 

104.1 
121.3 

: 

Total 
(Avoragg) 

115 

4,777,138 

483,712 

10.13 

ao.2 

Onder 
40 

Under  $40 
$40  to  $30 
$80  to  $180 

$180  &  over 

65 
38 
11 

1,667,425 
2,037,513 
1,073,200 

148,192 

213,074 
121,846 

3.89 
10.49 
11.36 

77.4 
91. t 
99.0 

: 

• 

Total 
(Average ) 

59 

4,451,082 

575, 702 

12.93 

112.5 

; 

Under  $40 
$40  to  $80 
$80  to  $180 

$180  &  over 

7 
14 
13 

5 

237,619 

852,232 

1,666,421 

1,694,810 

26,123 
103, 183 
205,331 
236,015 

10.99 
12.69 
12.32 
13.93 

95.7 
110.5 
107.3 
121.3 

40  and 
ovar 

Average  $11.43 


net  sales,  while  for  the  78  stores 
located  in  large  cities  it  constitutes 
$11.56.  That  is,  the  average  amount 
for  the  first  group  is  83.5  per  cent., 
and  for  the  second  group,  116.4  per 
cent,  of  the  average  for  all  of  the 
stores.  For  the  154  stores  which  are 
compared  from  year  to  year,  the  aver- 
age amount  for  1919  for  the  115  stores 
in  the  small  cities  is  $8.96  and  for  the 
39  stores  in  the  large  cities,  $11,80. 
The  amounts  of  selling  expense  per 
$100  of  total  net  sales  are  not  only 


larger  for  the  stores  in  the  large,  than 
for  those  in  the  small  cities,  when  the 
stores  are  treated  as  a  total,  but  also 
when  those  of  a  given  size  but  with 
different  location  are  compared. 

For  both  groups  of  stores  differ- 
ently located,  the  amounts  of  selling 
expense  per  $100  of  total  net  sales 
increase  as  the  stores  increase  in  size. 
For  the  225  stores  in  the  small  cities 
the  difference  between  the  amounts  of 
selling  expense  per  $100  of  total  net 
sales   for   the   small    and    the    large 


47 


stores  is  62.5  per  cent.  Omitting'  the 
single  store  in  the  large  city-group, 
which  has  a  selling  expense  of  $13.08 
per  $100  of  total  net  sales,  the  same 
tendency  for  the  amounts  to  increase 
as  the  stores  increase  in  size,  noted 
for  the  stores  located  in  small  cities, 
holds  for  those  located  in  the  large 
cities.  The  number  of  stores  located 
in  the  large  cities,  however,  is  rela- 
tively small  and  serves  as  an  uncer- 
tain basis  for  generalization. 


The  year-to-3^ear  comparison  of  the 
relation  of  selling  expense  to  total  net 
sales  for  the  154  identical  stores,  dis- 
tributed according  to  location,  is  in- 
teresting. For  each  of  the  years,  with 
a  single  exception,  the  amounts  in- 
crease as  the  stores  increase  in  size. 
The  trend  is  so  unmistakably  evident 
as  to  warrant  the  conclusion  that 
selling  expense  in  terms  of  sales  is 
higher  in  the  large,  than  it  is  in  the 
small  stores. 


TABLE  15 

TOTAL  EXPENSE,  SELLING  EXPENSE,  AND  AMOUNT  OP  SELLING  EXPENSE  PER  $100  OF 

TOTAL  EXPENSE,  FOR  154  IDENTICAL  STORES  CLASSIFIED  BY  SIZE  OF 

CITY  AND   STORE,   1919,   1918,  AND  1914,   COMBINED 


Size 

ClasElfled 

Total 
llet  Sales 
(In  000' £) 

;i'OTber 

of 
Store- 
years 

Total 
Expense 

Total 
Soiling 
Expense 

Selling  Expense  per  $100  of  Total  Expense 

of 

Cltv. 

(In  OCiO's; 

Amoimt 

( 

Per  Cent. 

Graphic          ,  ^   , 
Actual 

)  20  40  60  80  100  120 

Total 
(Averace) 

462 

$9,684,815 

$4,851,112 

$50.09 

100.0 

Under  $40 
$40  to  $80 
^0  to  tl80 

Sl80  &  over 

129 

172 

117 

44 

741,381 

1,981,375 
2,897,244 
4,064,815 

304,954 

913, 357 

1,491,801 

2,141,000 

41.13 
46.10 
51.49 
52.67 

82.1 

92.0 

102.8 

105.2 

Total 
(Average) 

: 

i 

Total 
(Average ) 

345 

4,208,734 

2,061,362 

48.98 

97.8 

i 

Under  $40 
$40  to  $80 
$80  to  $180 

f.180  &  over 

121 

138 

77 

9 

669, 915 
1,455,231 
1,667,871 

415,717 

276,723 
670, 140 
892,563 
221,936 

41.31 
46.05 
53.52 

53.39 

82.5 

91.9 

106.8 

106.6 

Under 
40 

Total 
(Average) 

117 

5,476,081 

2,789,750 

50.94 

101.7 

Under  $40 
$40  to  $80 
.«60  to  $180 

$180  8:  over 

8 
34 
40 
35 

71,466 

526,144 

1,229,376 

5,649,098 

28,231 

243,217 

599,238 

1,919,064 

39.50 
46.23 
48.74 
52.59 

78.9 

92.3 

97.3 

105.0 

40  and 

: 

Average  $50.09 


48 


A  similar  comparison  of  the  rela- 
tion of  selling  expense  to  total  ex- 
pense may  be  made  for  the  154  stores 
differently  located.  For  the  combined 
years,  the  average  amount  of  selling 
expense  per  $100  of  total  expense  for 
the  345  store-years,  for  stores  in  the 
small  cities,  as  shown  in  Table  15,  is 
$48.98,  and  for  the  117  store-years, 
for  the  stores  in  the  large  cities, 
$50.94.  That  is,  the  amount  for  stores 
in  the  small  cities  is  97.8  per  cent., 


and  for  the  stores  in  the  large  cities, 
101.7  per  cent,  of  the  average  for  all 
stores,  irrespective  of  location.  When 
stores  of  the  same  size,  but  with  dif- 
ferent location,  are  compared,  an  in- 
verse condition  obtains.  The  amounts 
are  generally  larger  for  the  stores  in 
the  small  than  for  those  in  the  large 
cities.  The  size  of  the  averages  for 
the  two  city-groups  is  explained  by 
the  proportions  of  stores  of  different 
size  which  are  included.    "Within  each 


TABLE  16 

TOTAL  EXPENSE,  SELLING  EXPENSE,  AND  AMOUNT  OP  SELLING  EXPENSE  PER  $100  OP 

TOTAL  EXPENSE,  FOR  154  STORES  CLASSIFIED  BY  SIZE  OF 

CITY    AND   STORE,    1919 


81z» 

ClBBslfled 

Total 
Het  Sales 
(In  OOO'e) 

Number 

of 
Stores 

Total 

Expense 

Total 
Selling 
Expence 

Selling  Expense  per  $100  of  Total 

Expense 

or 

city. 
(la  000  8 ) 

Amount 

Per  Cent. 

5   20 

Graphic 
40   60  80  100  120 

Actual 

Total 
(Average) 

154 

$4,273,325 

C^2, 182,027 

$51.06 

i 

100.0 

Under  S40 

^  to  2eo 

^0  to  $180 
$160  &  over 

14 
57 
56 
25 

76,237 

566,162 

1,361,844 

2,269,062 

29,018 

246,207 

719,436 

1,187,366 

38.06 
43.49 

52.83 
52.33 

74.5 

(Average) 

85.2 
103.5 
102.5 

Total 
(Avcrtre ) 

115 

1,793,459 

896,863 

50.01 

97.9 

Under  J40 
§40  to  $80 
$80  to  S180 

JlBO  Sc   over 

14 

51 

44 

6 

76,237 
481,773 
953,437 
282,007 

29,018 
211,678 
509,410 
146,757 

38.06 
43.94 
55.43 
52.04 

74.5 

Under 
40 

^^^^^ 

86.1 
104.6 
101.9 

I 

! 

Total 
(Avert ge ) 

Z9 

2,479,866 

1,285,164 

51.62 

101.5 

; 

40  and 

Under  S40 
§40  to   C80 
$80  to  $180 

$180  h   over 

6 
14 
19 

64,404 

468,407 

1,987,055 

34,529 

210,026 

1,040,609 

40.91 
51.43 
52.57 

80.1 
100.7 
102.6 

""          '" 

Averace  $51.06 

49 


TABLE  17 

TOTAL  EXPENSE,  SELLING  EXPENSE,  AND  AMOUNT  OF  SELLING  EXPENSE  PER  $100  OF 

TOTAL  EXPENSE,  FOR  154  STORES  CLASSIFIED  BY  SIZE  OF 

CITY   AND    STORE,    1918 


Slzo 

of 

City 

(In  000' a) 

Classified 

Total 
Het  Sales 
(in  000' s) 

llijmber 

of 
Stores 

Total 

Expense 

Total 
Selllne 
Expense 

Selling  Expense  per  ClOO  of  Total  Expense 

/c-.ount 

Per  Cent. 

Graphic         ^,<,t„3j_ 
D   20   40   60   80  100  120 

Total 
(Average; 

154 

§3,245,123 

Cl,  603,  671 

§49.63 

100.0 

Total 
(Average) 

Under  540 

^  to  feo 

580  to  $180 
§180  &  over 

42 
63 
S5 
14 

248,315 

755,488 

905,872 

1,  oc3,443 

101,621 
345,203 
445,138 
717,619 

40.92 
45.70 
49.14 
53.82 

82.5 
92.1 
99.0 

108.4 

i 

Total 
(Average ) 

115 

1,412,863 

680,737 

48.18 

97.1 

Under  §40 
§40  to  §80 
§80  to  §180 

§180  e;  over 

41 

49 

22 

3 

237,507 
539,094 
502,552 
133,710 

99,513 
244,788 
261,307 

75,179 

41.90 
45.41 
52.00 
56.23 

84.4 

91.5 

104.8 

113.3 

XJndQT 
40 

1 

Total 
(Average) 

39 

1,830,260 

928,884 

50.75 

102.3 

* 

— 

40  and 

Under  §40 
§40  to  ^0 
§80  to  §180 

§180  &  over 

1 
14 
13 
11 

10,808 

216,394 

403,320 

1,199,738 

2,108 
100,505 
183,831 
642,440 

19.50 
46.45 
45.58 
53.55 

32.3 

93.6 

91.6 

107.9 

Average    ^43. 63 


city-gToup,  the  amounts  increase  as 
the  stores  increase  in  size,  the  average 
amount  being  $41.31  for  the  small 
stores,  and  $53.39  for  the  large  stores 
in  the  small  cities.  Similar  differ- 
ences obtain  for  the  stores  located  in 
the  large  cities.  In  this  comparison 
the  stores  are  combined  for  the  years 
1919,  1918,  and  1914. 

In  Tables  16  to  18,  inclusive,  facts 
similar   to   those   given   immediately 


above  are  shown  for  the  years  1919, 
1918,  and  1914,  separately.  The  aver- 
age amount  of  selling  expense  per 
$100  of  total  expense  is  larger  for 
each  of  the  years  in  the  large  cities 
than  for  those  in  the  small  cities.  But 
when  stores  of  the  same  size,  but  with 
different  location,  are  compared  an 
inverse  condition  obtains.  It  is  this 
latter  comparison  which  is  the  more 
significant.     Within  both  groups  of 


50 


TABLE  18 

TOTAL  EXPENSE,  SELLING  EXPENSE,  AND  AMOUNT  OP  SELLING  EXPENSE  PER  $100  OP 

TOTAL  EXPENSE,  FOR  154  STORES  CLASSIFIED  BY  SIZE  OF 

CITY    AND    STORE,    1914 


Classified 

Total 
Net  Sales 
(In  000' a) 

Number 

of 
Stores 

Total 
Expense 

Total 
Selling 

Expense 

Selling  Expense  per  $100  of  Total  Expense 

of 

City 

(in  000' 8) 

Amoijnt 
< 

Per  Cent. 

^'•^P'^^^          Actval 
3   20   4p   60   80  100  120 

Total 
(Average ) 

154 

52,168,367 

51,059,414 

$48.86 

100.0 

Under  $40 
$40  to  $30 
$80  to  $180 

$180  &  over 

73 

52 

24 

5 

416,829 
659,705 
629,523 
452,305 

174,315 
321,857 
327,227 
256,015 

41.82 
48.79 
51.98 
51.05 

85.6 

99.9 

106.4 

104.5 

Total 

Total 
(Average) 

115 

1,002,412 

483,712 

43.25 

98.8 

Under  $40 
$40  to  380 
§80  to  5180 

$180  k   over 

66 
38 
11 

356,171 
434,359 
211,882 

148,192 
213,674 
121,846 

41.61 
49.19 
57.51 

• 

85.2 
100.7 
117.7 

Under 
40 

Total 
(Average) 

39 

1,165,955 

575,702 

49.38 

101.1 

j 

Under  $40 
$40  to  $80 
$80  to  $180 

$180  k   over 

7 
14 
13 

5 

60, 653 
225,346 
417,646 
462,305 

26,123 
100,183 
205,381 
236,015 

43.07 

88.1 

98.3 

100.7 

104.5 

40  and 
over 

"'^^"^^'"   i 

Average  548,86 


cities  the  amounts  increase  as  the 
stores  increase  in  size.  To  this  gen- 
eral rule  there  are  no  exceptions,  the 
regularity  of  the  increase,  however, 
being  more  noticeable  in  some  than  in 
other  years.     The  graphic   parts  of 


these  tables  throw  into  relief  the 
changes  from  store-group  to  store- 
group,  the  lengths  of  the  bars  being 
proportional  to  the  amounts  which 
they  represent. 


51 


E. — Summary. 

From  a  consideration  of  Tables  1 
to  18,  inclusive,  certain  definite  re- 
lationships between  selling  expense 
and  sales,  and  selling  expense  and 
total  expense,  have  been  discovered. 

(1).  The  amounts  of  selling  expense 
per  $100  of  total  net  sales  de- 
creased between  1914  and 
1918,  and  1918  and  1919,  not- 
withstanding the  fact  that  the 
average  amounts  of  total  net 
sales  and  of  selling  expense 
per  store  increased  between 
these  years. 

(2).  The  average  amount  of  selling 
expense  per  $100  of  total  ex- 
pense increased  between  1914 
and  1918,  and  1918  and  1919, 
notwithstanding  the  fact  that 
both  total  expense  and  selling 
expense  per  store  increased  be- 
tween these  years. 

(3).  The  amounts  of  selling  expense 
per  $100  of  total  net  sales  de- 
creased between  1914  and 
1918,  and  1918  and  1919,  not 
only  for  all  stores,  but  like- 
wise for  stores  classified  ac- 
cording to  size. 

(4).  The  amounts  of  selling  expense 
per  $100  of  total  expense 
which,  as  indicated  above,  in- 
creased between  1914  and  1918, 
and  1918  and  1919  for  the 
stores  treated  as  a  whole,  de- 
creased for  the  stores  with  an- 
nual sales  of  less  than  $40,000 
and  of  $40,000  to  $80,000. 
They  are  uncertain  as  to  direc- 


tion from  year  to  year  for 
stores  with  annual  sales  in  ex- 
cess of  these  amounts. 

(5).  The  amounts  of  selling  expense 
per  $100  of  total  net  sales  are 
lower  for  each  year  and  for  all 
years  for  stores  located  in 
small  cities  than  for  those  lo- 
cated in  large  cities. 

(6).  The  amounts  of  selling  expense 
per  $100  of  total  expense  are 
lower  for  each  year  and  for  the 
combined  years  for  the  stores 
in  the  small  cities  than  for 
those  in  the  large  cities,  when 
the  stores  are  treated  as  a 
total.  When  stores  of  the  same 
size,  but  with  different  loca- 
tions are  compared,  an  inverse 
condition  obtains. 

(7).  The  amounts  of  selling  expense 
per  $100  of  total  net  sales  in- 
crease as  stores  increase  in 
size.  This  condition  obtains  for 
stores  treated  as  a  whole  and  as 
classified  by  city  location,  not 
only  for  the  combined,  but  also 
for  the  individual  years,  1919, 
1918,  and  1914. 

(8).  The  amounts  of  selling  expense 
per  $100  of  total  expense  in- 
crease as  the  stores  increase  in 
size.  This  condition  obtains 
for  the  combined  and  for  the 
individual  years  1919,  1918, 
and  1914,  not  only  for  the 
stores  as  a  whole,  but  also  when 
they  are  classified  by  the  size 
of  the  city  in  which  they  are 
located. 


52 


2. — YEARLY  AMOUNTS  OF  SELLING  EX- 
PENSE IN  RELATION  TO  THE 
AMOUNTS  OF  STOCK  CARRIED,  FOR 
STORES  CLASSIFIED  BY  YEARS,  BY 
SIZE,  AND  BY  RATES  OF  STOCK  TURN- 
OVER. 

The  discussion  of  store  inventories 
in  the  fifth  volume  of  the  Bureau's 
study  of  Costs,  Merchandising  Prac- 
tices, Advertising  and  Sales  in  the 
Retail  Distribution  of  Clothing 
showed  that  inventories  in  terms  of 
sales  decreased  between  1914  and 
1918,  and  1918  and  1919.*  The 
amount  per  $100  of  total  net  sales  for 
223  stores  in  1914  was  $43.70.  For 
the  same  stores  in  1918  it  was  $41.44, 
and  in  1919,  $32.72.  Similar  de- 
creases for  149  stores  are  shown  be- 
low in  Table  20.  In  1914  the  average 
amount  was  $43.44,  in  1918,  $40.53, 
and  in  1919,  $32.84.  For  the  two 
groups  of  stores  the  amounts  are 
strikingly  the  same  and  the  direction 
of  change  from  year  to  year  identical. 
•  Moreover,  a  comparison  for  a  vary- 
ing and  an  identical  number  of  stores 
from  year  to  year  showed  that  inven- 
tories in  terms  of  sales  decrease  as 
stores  increase  in  size,  the  regularity 
of  the  tendency  being  apparent  not 
only  when  the  stores  are  classified  in 
wide,  but  also  when  they  are  placed 
in  narrow  sales-groups.  These 
changes  from  year  to  year,  and  from 
store-group  to  store-group  may  be 
said  to  have  been  established  beyond 
doubt  for  the  stores  concerned  and 
they  are  thought  to  be  true  for  all 
stores.f 

*  Vol.  V,  p.  418. 

t  Ibid.,  Vol.  V,  p.  420. 


In  seeking  to  discover  the  relations 
of  selling  expense  to  sales  and  to  total 
expense,  and  to  determine,  if  possible, 
the  way  in  which  selling  expense  may 
be  reduced,  a  complete  analysis  has 
been  made  of  selling  expense  when 
the  stores  are  classified  by  the  relative 
amounts  of  inventory  carried.  More- 
over, the  analysis  is  extended  to 
stores  when  they  are  classified  by  size 
and  by  rates  of  stock  turnover.  It 
was  hoped,  from  a  detailed  analysis  of 
the  store  records  available,  that  it 
would  be  possible  to  determine  quan- 
titatively the  eifect  of  size  of  inven- 
tory on  selling  expense.  In  this  re- 
spect the  conclusions  reached  are  not 
wholly  negative. 

A. — Yearly  Amounts  of  Selling  Ex- 
pense per  $100  of  Total  Net  Sales 
and  per  $100  of  Total  Expense, 
1919,  1918,  and  1914. 

For  the  three  years  1919,  1918,  and 
1914,  the  records  of  149  stores  are 
available  for  study.  The  selling  ex- 
penses for  the  stores  classified  by 
amounts  of  inventory  per  $100  of 
total  net  sales  are  expressed  first,  in 
terms  of  net  sales,  and  second,  in 
terms  of  total  expense. 

For  the  combined  years,  the  stores 
having  on  the  average  an  inventory  of 
less  than  $20  per  $100  of  total  net 
sales  had  a  selling  expense  per  $100 
of  total  net  sales  of  $8.40;  the  stores 
having  on  the  average  an  inventory 
between  $20  and  $40  per  $100  of  total 
net  sales  had  a  selling  expense,  simi- 
larly expressed,  of  $11.66.  From  this 
figure  as  a  maximum,  the  amounts  of 


53 


selling  expense  per  $100  of  total  net 
sales  decrease  as  the  size  of  the  in- 
ventories increase.  It  will  be  noted 
that  the  direction  of  the  change  in 
the  amounts  from  inventory-group  to 
inventory-group  is  certain  only  for 
those  stores  having  inventories  in  ex- 
cess of  $20  per  $100  of  total  net  sales. 
This  is  true  not  only  for  the  com- 
bined years,  but  also  for  the  years 
separately. 

A  casual  inspection  of  Table  19 
might  lead  to  the  belief  that  the  oc- 
casion for  the  low  selling  expense  per 
$100  of  total  net  sales  is  the  amount 
of  inventory  carried.  This,  however, 
is  not  necessarily  the  case.  The  dis- 
cussion on  pages  42  to  44  showed  that 
the  amounts  of  selling  expense  per 
$100  of  total  net  sales  increase  as 
stores  increase  in  size.  Further,  the 
discussion  in  Volume  V*  of  the 
Bureau's  report  on  Costs,  Merchan- 
dising Practices,  Advertising  and 
Sales  in  the  Reiail  Distribution  of 
Clothing,  and  in  Tables  28  to  31,  in- 
clusive, following,  show  that  the  size 
of  inventories  per  $100  of  total  net 
sales  decreases  as  the  stores  increase 
in  size.  That  is,  the  stores  which  have 
high  selling  expense  have  relatively 
low  inventories  in  terms  of  sales.  Ac- 
cordingly, the  amounts  of  selling  ex- 
pense in  terms  of  sales  decrease  as 
the  size  of  the  inventories,  similarly 
expressed,  increases.  This  condition, 
however,  may  be  due  not  so  much  to 
the  size  of  the  inventories  as  to  the 
size  of  the  stores  that  reported  the 
sales. 

The  importance  of  the  size  of  the 

•  Page  420. 


stores,  as  such,  may  be  eliminated 
from  consideration  and  the  effect  of 
the  size  of  the  inventory  noted  by  ex- 
pressing the  selling  expense  per  $100 
of  total  net  sales  in  terms  of  the 
amount  sold  per  $1  of  inventory.f 
This  is  done  in  column  6  of  Table  19, 
and  is  graphically  shown  by  the  cor- 
responding bars. 

What  do  these  figures  reveal?  The 
average  selling  expense  per  $100  of 
total  net  sales  for  the  amount  sold  per 
$1  of  inventory  is  $4.09.  For  the 
stores  having  inventories  of  less  than 
$20  per  $100  of  total  net  sales  the  cor- 
responding cost  is  $1.47.  Selling  ex- 
penses, so  expressed,  increase  without 
an  exception  as  the  amounts  of  in- 
ventory in  terms  of  sales  increase.  It 
should  be  kept  in  mind  that  in  these 
figures  the  size  of  the  store,  as  a  con- 
trolling factor  in  determining  selling 
expense,  has  been  eliminated  since  in 
each  case  the  selling  expense  per  $100 
of  total  net  sales  applies  to  the 
amounts  sold  per  $1  of  inventory. 
The  uncertain  trend  of  the  amounts  of 
selling  expense  per  $100  of  total  net 
sales,  reflected  in  Table  19  for  the 
stores  with  low  inventories,  has  been 
removed  and  regularity  secured  as  to 
the  direction  of  change  for  stores  with 
different  amounts  of  inventory. 

The  above  discussion  which  relates 
to  the  three  years  combined  applies 
also  to  the  individual  years.  With- 
out an  exception  the  selling  expenses 
per  $100  of  total  net  sales  for  the 
amount  sold  per  $1  of  inventory  in- 
crease in  each  of  the  years  as  the  size 

t  The  method  by  which  this  unit  is  com- 
puted  is  explained  on  page  4,  item   17. 


54 


TABLE  19 


AMOUNT  OF  SELLING  EXPENSE  PER  $100  OF  TOTAL  NET  SALES  FOR  THE  AMOUNT  SOLD 

PER  $1   OF  INVENTORY,  FOR  149  IDENTICAL  STORES  CLASSIFIED  BY  AMOUNT 

OF  INVENTORY  PER  $100  OF  TOTAL  NET  SALES,  1919,  1918,  AND  1914 


AnoMnt  of 
Inventory 
per  $100  of 
TotBl 
Hot  Salsa 


Onder  |20 
t20  to  t40 
140  to  (60 
%60  i  over 


Itadsr  |20 
tSO  to  t40 
|40  to  (60 
leo  4  over 


Doder  tZO 
|20  te  %*0 
%*0  to  $60 
$60  fc  over 


168 
177 


Omlar  tso 
$£0  to  $40 
|40  to  $C0 
$60  &  over 


Graphic 
20      40      60      60    100   120 


$10.88 


8.40 

11. «6 
10.08 
9.37 


10.52 


6.75 
10.98 
9.54 
7.65 


10.9 


6.06 
12.47 
9.74 
9.55 


11.56 


10.94 
12.71 
10.96 
9.9S 


100.0 


77.2 
107.2 
92.1 
86.1 


96.7 


80.4 
100.9 
87.7 
«9.4 


100.9 


S5.6 
114.6 
89.5 

es.9 


106.2 


100.6 
116.8 
100.7 
91. S 


Selling  EipenM  per  JlOO  of  Total  Ilct  Sales 
per  Amcvint  Sold  per  $1  of   Inventory 


O     20      40      60      80   li 


$4.09 


1.47 
5.50 

5.01 
6.55 


5.45 


1.55 
S.29 
4.77 
5.28 


4.44 


1.06 
3.74 
4.87 
6.54 


Op  12p  140  1^  lap 


5.03 


1.92 
5.81 
5.48 
6.96 


100.0 


35.9 

es.6 

122.5 
160.1 

84.4 


37.4- 

eo.4 

116.6 
129.1 


108.6 


25.9 
91.4 
119.1 
159.9 


123.0 


46.9 
9S.2 

134.0 
170.1 


ATer&s«  $10.89 


Averege  $4.09 


of  the  inventory  measured  in  sales  in- 
creases. 

A  moment's  consideration  should  be 
given  to  the  averages  for  the  three 
separate  years.  It  will  be  recalled 
that  inventories  in  terms  of  sales  were 
relatively  low  in  1919.  For  the  149 
stores  in  this  year,  the  amount  of  sell- 
ing expense  per  $100  of  total  net  sales 
was  $10.52,  or  $0.46  less  than  in  1918 
and  $1.04  less  than  in  1914.  When 
the  amounts  of  selling  expense  per 
$100  of  total  net  sales  are  shown  for 
the  amount  sold  per  $1  of  inventory, 


the  difference  in  the  conditions  be- 
tween the  various  years  is  increased, 
the  selling  expense  in  1919  being  ap- 
proximately $1  less  than  in  1918  and 
$1.58  less  than  in  1914.  This  differ- 
ence is  attributable,  not  so  much  to 
the  sales  as  such  as  it  is  to  the  low 
inventories  in  relation  to  sales  in  1919. 
The  amounts  of  selling  expense  per 
$100  of  total  net  sales  for  stores  in 
the  combined  years  and  for  the  years 
separately  are  averages.  If  the  dis- 
tribution of  the  amounts  of  selling 
expense  per  $100  of  total  net  sales  is 


TABLE  20 


TOTAL  NET  SALES,  INVENTORY,  AND  AMOUNT  OP  INVENTORY  PER  $100  OF  TOTAL  NET 

SALES,    FOR   149   IDENTICAL   STORES    CLASSIFIED   BY    AMOUNT   OF   SELLING 

EXPENSE  PER  $100  OF  TOTAL  NET  SALES,  1919,  1918,  AND  1914 


Amount  of 

Selling 

Expense 

per  3100  of 

Total 

Net  Sales 

Huraber 

of 
Store- 
years 

Total 
Net  Sales 

Total 
Inventory 

Inventory  per  JlOO  of  Total  Ket  Sales 

Years 

Amount 

Per  Cent. 

""P'^^^           1  Actual 
0  20  40  60  80  100  120  140  160 

Total 
(Average) 

447 

£43,599,972 

♦16,369,406 

e37.54 

100.0 

Total 
(Average) 

Under  $6 

ee  to  Sl2 
$12  i  over 

93 
247 
107 

4,247,831 
26,191,256 
13,160,885 

1,930,599 
9,702,173 
4,736,634 

45.45 
37.04 
35.99 

121.1 

95.9 

• 

Total 
(Average) 

149 

20,303,641 

6,657,055 

32.84 

Under  8S 

♦6  to  «12 
$12  It   over 

S8 
80 
31 

2,322,782 
12,418,163 
5,552,696 

879,810 
4,055,317 
1,731,929 

37.33 
32.66 
31.13 

100.9 

1919 

: 

: 

i 

Total 
(Average) 

149 

14,322,667 

5,804,340 

40.53 

; 

Under  $6 

•6  to  $12 
$12  &  over 

30 
86 
33 

1,187,535 
9,197,800 
3,937,332 

653,961 
3,650,841 
1,499,533 

55.07 
39.69 
38.09 

146.7 

1913 

; 

Total 
(Average) 

149 

6,973,664 

3,893,010 

43.44 

115.7 

Under  |6 

$6  to  412 
$12  h   DBer 

25 
81 
45 

737, 514 
4,575,293 
3,660,857 

396,823 
1,996,015 
1,505,167 

53.81 
43.63 
41.12 

1914 

109. S 

Average  $37,54 

studied,  it  is  found  that  76  per  cent, 
of  the  stores  in  the  combined  years 
had  selling  expenses  per  $100  of  total 
net  sales  less  than  $12  and  55  per 
cent,  between  $6  and  $12. 

In  further  proof  that  the  amounts 
of  selling  expense  per  $100  of  total 
net  sales  decrease  as  the  size  of  the 
inventory  in  terms  of  sales  increases, 
it  may  be  noted  for  the  combined 
years,  as  is  shown  in  Table  20,  that 
the  average  amount  of  inventory  so 
expressed  for  stores  with  selling  ex- 


pense under  $6  per  $100  of  total  net 
sales  is  $45.45.  For  the  stores  having 
selling  expenses  between  $6  and  $12 
per  $100  of  total  net  sales  it  is  $37.04, 
and  for  those  with  selling  expenses  of 
$12  and  over  per  $100  of  total  net 
sales  it  is  $35.99.  For  each  of  the 
three  years,  similar  decreases  in  the 
amounts  of  inventory  per  $100  of 
total  net  sales  characterize  the  stores 
with  increasing  selling  expense. 
These  relations  are  shown  in  Table  20. 
In  the  foregoing  discussion  of  149 


56 


TABLE  21 


TOTAL  EXPENSE,  SELLING  EXPENSE,  AND  AMOUNT  OF  SELLING  EXPENSE  PER  $100  OP 

TOTAL    EXPENSE,    FOR    149    IDENTICAL    STORES    CLASSIFIED    BY    AMOUNT    OP 

INVENTORY  PER  $100  OF  TOTAL  NET  SALES,  1919,  1918,  AND  1914 


Amount  of 

Inventory 

per  $100  of 

Total 

Net  Sales 

Nujnber 

of 
Store- 
years 

Total 
Expense 

Total 
Selling 
Expense 

Selling  Expense  per  vlOO  of  Total  Expense 

Years 

Anotmt 

Per  Cent* 

Graph lo 

Actual 

3  20  40  CO  30  100  120 

Total 
(Average) 

447 

$9,  <■  50, 641 

:>l,745,e29 

$50.22 

100.0 

I 

Under  $20 
§20  to  $40 
^40  to  $60 
§60  4  over 

14 

168 

177 

83 

365,310 
5,806,322 
2,456,513 

824,496 

172,900 
3,088,085 
1,128,967 

355,877 

47.59 
53.18 
45.96 
43.16 

94.3 

105.9 

91. S 

85.9 

Total 
(Average) 

1 

1 

Total 
(Average) 

149 

4,168,820 

2,135,072 

51.22 

50.52 
52.91 
46.03 
37.42 

102.0 

Under  $20 
§20  to  ^ 
t40  to  $60 
J60  &  over 

7 
83 
51 

8 

209,266 

3,117,375 

751,639 

90,540 

105,711 

1,649,518 

345,965 

33,878 

100.6 

105.4 

91.7 

74.5 

1919 

* 

I 

j 

Total 
(Average) 

149 

3,163,345 

1,573,249 

49.73 

99.0 

i 

Under  $20 
#20  to  $40 
S40  to  $60 
560  &  over 

3 
46 
60 
40 

81,440 

1,728,776 

950,082 

403,047 

32,117 
937,441 
427,462 
176,229 

39.44 
54.23 
44.99 
43.72 

78.5 

103.0 

89.6 

87.1 

1918 

• 

1 

Total 
(Average ) 

149 

2,118,476 

1,037,508 

48.97 

97.5 

1 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

4 
S9 
66 
40 

72,604 
960,171 
754,792 
330,909 

35,072 
501,126 
355,540 
145,770 

48.31 
52.19 
47.10 
44.05 

96.2 

103.9 

93.8 

87.7 

1914 

^^^^^ I 

^^^^^^^^^ 

stores  for  three  years,  comparisons 
have  been  made  of  the  selling  expense 
first,  in  terms  of  total  net  sales,  and 
second,  in  terms  of  net  sales  for  the 
amount  sold  per  $1  of  inventory.  The 
conclusions  which  have  been  reached 
are  first,  that  selling  expense  per  $100 


Average  $50.22 

of  total  net  sales  decreased  between 
1914  and  1918,  and  1918  and  1919. 
Second,  that  for  stores  with  inven- 
tories in  excess  of  $20  per  $100  of 
total  net  sales,  the  amounts  of  selling 
expense  in  terms  of  sales  decrease  as 
the  size  of  the  inventories  in  terms 


57 


of  sales  increases.  This  tendency, 
however,  as  has  been  shown,  is  due 
to  the  store  size  and  not  to  the  size 
of  inventory.  Third,  that  the  amounts 
of  selling  expense  per  $100  of  total 
net  sales  for  the  amount  sold  for  each 
$1  of  inventory  uniformly  increase 
for  the  combined  and  for  each  of  the 
years  as  the  amounts  of  inventory 
per  $100  of  total  net  sales  increase. 
Fourth,  that  the  selling  expense  per 
$100  of  total  net  sales  per  amount  sold 
per  $1  of  inventory  was  noticeably 
less  in  1919  than  in  either  of  the  other 
years,  largely  because  of  the  relatively 
small  inventories  for  the  stores  in  this 
year.  The  general  conclusion  from 
the  above  discussion  seems  to  be  that 
irrespective  of  store  size,  stores  which 
have  large  inventories  have  relatively 
high  selling  expense,  and  to  suggest 
the  practical  conclusion  that  for  all 
stores  one  way  of  keeping  down  sell- 
ing expense  is  to  reduce  the  size  of  the 
inventory  in  relation  to  sales. 

Another  method  of  comparing  the 
amounts  of  selling  expense  for  stores 
from  year  to  year  and  for  stores  with 
different-sized  inventories  is  to  ex- 
press them  in  terms  of  total  expense. 
This  is  done  in  Table  21.  For  the 
combined  years,  the  average  selling 
expense  per  $100  of  total  expense  is 
$50.22.  For  1919  the  amount  was 
$51.22,  for  1918,  $49.73,  and  for  1914, 
$48.97.  That  is,  the  amounts  in- 
creased between  1914  and  1918,  and 
1918  and  1919.  During  these  years 
both  the  total  operating  expense  and 
the  selling  expense  increased.  For 
the  154  stores  shown  in  Table  3,  page 
36,  the  total  operating  expense  per 


store  increased  between  1914  and  1918 
by  49.6  per  cent,  and  between  1914 
and  1919  by  97.1  per  cent.  The  cor- 
responding increases  in  the  amounts 
of  selling  expense  per  store  were,  re- 
spectively, 51.9  per  cent,  and  106.0 
per  cent.  Similar  increases  from 
year  to  year  hold  for  the  149  stores 
as  shown  in  Table  20.  But  selling  ex- 
pense  increased  more  rapidly  than 
did  total  expense,  with  tiie  result  that 
from  year  to  year  selling  expense  in- 
creased when  expressed  in  terms  of 
total  expense. 

When  the  stores  for  the  combined 
years  and  for  the  years  separately  are 
classified  by  the  amounts  of  inventory 
per  $100  of  total  net  sales,  as  in  Table 
21,  the  amounts  of  selling  expense  per 
$100  of  total  expense  on  the  whole  de- 
crease as  the  amounts  of  inventory 
per  $100  of  total  net  sales  increase. 
That  is,  there  is  an  inverse  relation- 
ship between  the  two  factors.  But 
this  is  more  apparent  than  real.  The 
same  line  of  reasoning  which  is  used 
above  *  to  account  for  this  margin 
applies  here.  It  should  be  remem- 
bered that  the  stores  with  small  in- 
ventories per  $100  of  total  net  sales 
are  generally  larger  than  those  with 
large  inventories  so  expressed,  and 
that  both  selling  expense  and  total 
operating  expense  per  $100  of  total 
net  sales  increase  as  stores  increase  in 
size.  By  consulting  Tables  10  to  14, 
inclusive,  pages  43  to  47,  this  condi- 
tion for  selling  expense  may  be  ob- 
served for  stores  with  different  loca- 
tion. The  movement  of  total  operat- 
ing  expense   for   stores  of  different 

*  Page  54. 


58 


TABLE  22 

TOTAL  NET  SALES,   SELLING  EXPENSE,   AND  AMOUNT  OF  SELLING  EXPENSE  PER  $100 

OP   TOTAL  NET  SALES,   FOR   149   IDENTICAL   STORES   CLASSIFIED  BY   SIZE 

AND  BY  AMOUNT  OF  INVENTORY  PER  $100  OF  TOTAL  NET 

SALES,    1919,    1918,    AND    1914,    COMBINED 


Claselfled 

Total 
Net  Sales 

Araoint  of 

Inventory 

per  SlCO  of 

Total 

IJet  Sales 

Ifumber 

of 
Store- 
years 

Total 
net  Sales 

Total 
Selling 

Expense 

Selling  Expense  per  $100  of 
Total  Hot  Sales 

Amount 

Per  Cent. 

(In  OOO'b) 

Graphic         1 
0   20   40   60  80  100  120   "^ 

Total 
(Average) 

447 

$43,599,972 

$4,746,829 

$10.63 

100.0 

: 

Total 
(Average) 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

14 

168 
177 

88 

2,059,425 
26,478,436 
11,263,282 

3,798,829 

172,900 
3,088,085 
1,128,967 

355,877 

8.40 
11.66 
10.02 

9.37 

77.2 

107.2 
92.1 
86.1 

Total 
(Average) 

127 

3,532,911 

298,231 

8.44 

77.6 

Dnder  $40 

Undor  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

1 
18 
52 
56 

28,933 

560, 460 

1,412,525 

1,530,993 

948 

54,036 

112,294 

130,953 

3.23 
9.C4 
7.95 
8.55 

30.1 
88.6 
75.1 
78.6 

Total 
(Average) 

165 

9,360,348 

877,524 

9.37 

86.1 

$40  to  $80 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

6 
52 
82 
25 

402,009 
3,083,049 
4,458,869 
1,416,421 

29,622 

283,795 
428,579 
135, 528 

7.37 
9.21 
9.61 
9.57 

67.7 
84.7 
88.5 

88.0 

Total 
(Average) 

112 

13,121,494 

1,445,029 

11.01 

101.2 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  !c  over 

5 

60 

40 

7 

555, 107 
7,076,841 
4,638,131 

851,415 

53,399 
602,575 
499,659 

89,396 

9.62 
11.34 
10.77 
10.50 

88.4 
104.2 
99.0 
96.5 

$30.  to  $180 

; 

Total 
(Average ) 

43 

17,585,219 

2,125,045 

12.08 

111.0 

$180  &  over 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

2 

38 
3 

* 

1,073,376 

15,758,086 

753,757 

88,931 

1,947,679 

68,435 

8.29 
12.36 

76.2 
113.6 

Average  $10,89 


59 


size  is  comprehensively  treated  in 
Volume  III  *  of  the  Bureau's  report 
on  Costs  Merchandising  Practices, 
Advertising  and  Sales  in  the  Retail 
Distribution  of  Clothing.  Table  21 
should  be  interpreted  with  these  facts 
in  mind.  As  shewn  on  page  57,  the 
amounts  of  selling  expense  per  $100 
of  total  net  sales  decrease  as  the  size 
of  inventories  in  terms  of  sales  in- 
creases. But  the  amounts  of  selling 
expense  per  $100  of  total  net  sales  per 
amount  sold  per  $1  of  inventory  in- 
crease. A  direct  relationship  would 
also  be  secured,  as  in  Table  19,  were 
the  amounts  of  selling  expense  per 
$100  of  total  expense  determined  for 
each  $1  of  inventory  sold. 

It  seems  unnecessary  to  express  the 
amounts  in  this  form  or  to  repeat  the 
discussion  on  this  point  and  the  con- 
clusions to  which  it  has  led.  It  will 
be  sufficient  briefly  to  summarize  the 
relation  of  selling  expense  to  total  ex- 
pense as  follows:  First,  the  amounts 
increased  from  1914  to  1918,  and 
from  1918  to  1919.  Second,  the 
amounts  decrease  as  the  amounts  of 
inventory  per  $100  of  total  expense 
increase.  Third,  the  amounts  per 
amount  sold  per  $1  of  inventory  in- 
crease as  the  size  of  the  inventory  per 
$100  of  total  net  sales  increases. 

B. — Yearly  Amounts  of  Selling  Ex- 
pense per  $100  of  Total  Net 
Sales  and  per  $100  of  Total  Ex- 
pense, for  Stores  Classified  by 
Size,  1919,  1918,  and  1914. 

In  further  consideration  of  the  rela- 
tion of  selling  expense  to  sales  and  to 
*  Pages  244  to  252,  inclusive. 


total  expense  for  stores  with  inven- 
tories of  different  size  per  $100  of 
total  net  sales,  it  has  been  thought  of 
interest  to  classify  the  stores  with  re- 
spect to  size.  This  is  done  in  detail 
in  Tables  22  to  35,  inclusive. 

The  method  of  presenting  the  data 
is  as  follows:  First,  to  classify  the 
stores  by  size  and  by  amount  of  in- 
ventory per  $100  of  total  net  sales 
for  the  combined  and  for  the  indi- 
vidual years,  and  to  show  the  amounts 
of  selling  expense  per  $100  of  total 
net  sales  for  the  stores  so  treated. 
Second,  to  show  the  amounts  of  in- 
ventor}' per  $100  of  total  net  sales  for 
the  stores  of  different  size  classified 
by  amounts  of  selling  expense  per 
$100  of  total  net  sales.  Third,  for  the 
same  group  of  stores,  to  express  the 
amounts  of  selling  expense  in  terms 
of  $100  of  total  expense  for  the  stores 
classified  by  size  and  by  amounts  of 
inventory  per  $100  of  total  net  sales. 

In  Tables  18  to  35,  inclusive,  the 
same  149  stores  which  were  consid- 
ered above  are  classified  by  years  and 
by  size.  For  the  combined  years 
1919,  1918,  and  1914,  the  average 
amounts  of  selling  expense  per  $100 
of  total  net  sales  increase  as  the  stores 
increase  in  size.  For  those  with  an- 
nual sales  under  $40,000,  it  is  $8.44 ; 
for  those  with  annual  sales  of  $40,000 
to  $80,000  it  is  $9.37 ;  for  those  with 
annual  sales  of  $80,000  to  $180,000  it 
is  $11.01 ;  and  for  those  with  sales  of 
$180,000  and  over,  it  is  $12.08.  These 
amounts  closely  correspond  to  those 
for  the  154  identical  stores  shown  in 
Table  11,  page  44. 

On    the    other    hand,    when    the 


60 


TABLE  23 

TOTAL  NET  SALES,  SELLING  EXPENSE,   AND  AMOUNT  OF  SELLING  EXPENSE  PER  $100 

OF    TOTAL    NET   SALES,    FOR    149    STORES    CLASSIFIED    BY    SIZE    AND    BY 

AMOUNT  OF  INVENTORY  PER  $100  OF  TOTAL  NET  SALES,  1919 


Amount  of 

Inyentory 

per  $100  of 

Total 

Bet  Sales 

Number 

of 
Stores 

Toial 
Met  Sales 

Total 
Selling 
Expense 

Sailing  Expense  per  $100  of 
Total  Net  Sales 

€la»iirie4 

Total 
Bftt  Sales 
(In  090'a) 

Amount 

Per  Cent. 

Graphic         1 

'  Actual 

0   20   40   60   80  100  120 

Total 
(Average) 

149 

$20,303,641 

$2,135,072 

$10.52 

100.0 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

7 
83 
51 

S 

1, 208, 118 

15,018,367 

3,628,188 

448,963 

105,711 

1,649,513 

345,965 

33,878 

8. 75* 

10.98 

9.54 

7.55 

Total 
(Average) 

104.4 
90.7 
71.8 

Total 
(Average ) 

14 

423,714 

29,018 

6.77 

64.4 

Onder  $40 

under  $20 
$S0  to  $40 
$40  to  $60 
$60  it   over 

2 

8 

4 

68,054 
244,012 
116,648 

6,275 

15,797 

6,946 

9.22 
6.47 
5.95 

87.6 
61.5 
56.6 

— — 

Total 
(Average) 

55 

3,082,152 

233,343 

7.59 

72.1 

$40  to  $80 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  i  over 

« 

ZS 

23 

3 

150,276 
1,237,723 
1,472,999 

171,154 

7,320 

94,720 

122,592 

9,211 

4.87 
7.36 
8.32 
5.38 

46.3 
70.0 
79.1 
51.1 

^— 

Total 
(Average ) 

56 

6,607,089 

700,800 

10.61 

100.9 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

4 
37 
14 

1 

384,466 
4,382,158 
1,679,299 

16i;i66 

34,307 
465,124 
183,648 

17,721 

8.92 
10.61 
10.94 
11.00 

84.9 

$80  to  $180 

; 

104.0 
104.6 

! 

; 

Total 
(Average) 

24 

10,135,636 

1,171,411 

11.50 

109.3 

; 

Under  $20 
C2Q  to  S40 
$40  to  $60 
$60  8c  over 

1 
22 

1 

673,376 

9,230,452 

231,873 

64,084 

1,033,399 

23,923 

9.52 
11.67 

10.33 

• 

90.5 
110.9 
98.1 

$180  &  over 

i 

Average   {10.52 


61 


TABLE  24 

TOTAL  NET  SALES,   SELLING  EXPENSE,    AND  AMOUNT  OF  SELLING  EXPENSE  PER  $100 

OF    TOTAL    NET    SALES,    FOR    149    STORES    CLASSIFIED    BY    SIZE    AND    BY 

AMOUNT  OF  INVENTORY  PER  $100  OF  TOTAL  NET  SALES,   1918 


Amoujit  cf 

Inventory 

per  tlOO  of 

Total 

Net  Sales 

(hjjnber 

of 
Stores 

Total 
Net  Seles 

Total 
Selling 
Expense 

Selling  Expense  per  $100  of 
Total  Ket  Sales 

Claeelfled 

Totai 
Vet   Sales 

Amount 

Per  Cent. 

(In  OCiO'e) 

Graphic 

Actual 
p  2P  4P  €<)  80  100  120 

Total 
(Average) 

149 

$14,322,667 

$1,573,249 

$10.98 

i 

^^^« 

ttoder  i20 
ISO  to  ^ 
|40  to  $60 
?60  &  over 

5 
46 
60 
40 

630,649 
7,617,748 
4,369,893 
1,884,377 

32,117 
937,441 
427,462 
176,229 

6,05 

12.47 

9.74 

9.35 

: 

Total 
(Average ) 

^^^ 

55. 1 

113.6 

88.7 

• 

! 
1 

Total 
(Average ) 

42 

1,256,796 

101,621 

8.09 

73.7 

Vaier   |40 

Under  JeO 
$20  to  $40 
$40  to  $60 
$60  fc  over 

6 
13 
23 

209, 528 
381,673 
665,694 

17,520 
27,892 
56,209 

8.36 
7.31 
8.44 

76.1 
66.6 

76.9 

Total 
(Average ) 

60 

3,501,019 

331,958 

9.48 

86.5 

^^^ 

#40  to  $80 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

2 

15 
29 
14 

130, 649 

901,852 

1,632,061 

836,457 

7,270 

97,097 

144,693 

82,898 

6.66 

10.77 

8. 87 

9.91 

50.6 
98.1 
80.8 
90.3 

Totnl 
(Average) 

33 

3,860,130 

422,051 

10.93 

99.5 

.$80  to  tl80 

Dnder  $20 
$20  to  $40 

$40  to  $do 
$60  &  over 

14 

16 

3 

1,623,524 
1,854,280 

382,326 

194,659 

.190,370 

37,122 

11.98 

10.27 

9.71 

109.1 

93.5 

i 

88.4 

! 

Total 
(Average) 

14 

5,704,723 

717,619 

12.68 

114.6 

4160  !t  over 

Under  $20 
$20  to  $40 
$40  to  $60 
J60  &  over 

1 

11 

2 

■ 

400,000 

4,782,844 

521,879 

24,847 

628, 265 

64,507 

6.21 
13.14 
12.36 

56.6 

112.6 

i 

Average  $10.98 


62 


TABLE  25 

TOTAL  NET  SALES,   SELLING  EXPENSE,   AND  AMOUNT  OF  SELLING  EIXPENSE  PER  $100 

OF    TOTAL    NET    SALES,    FOR    149    STORES    CLASSIFIED    BY    SIZE    AND    BY 

AMOUNT  OF  INVENTORY  PER  $100  OF  TOTAL  NET  SALES,  1914 


Amount  of 

Inventory 

per  f-100  of 

Total 

llet  Sales 

H\imber 

of 
Stores 

Total 
Not   Sales 

Total 
Selling 
Expense 

Selling  Exponae  par  $100  of 
Total  Net  Sales 

Classified 
Total 

Anount 

C 

Per  Cent. 

(In  OOO'e) 

Graphic 

1    Actual 

20      40      60      80   100   120   140 

Total 
(Average) 

149 

$8,973,664 

$1,037,508 

$11.55 

100.0 

Under  tZO 
JSO  to  ^ 
Uo  to  $60 
$60  i  over 

4 

39 

66 
40 

320,653 
3,942,321 
3,245,201 
1,465,464 

35,072 
501,126 
355,540 
145,770 

10.94 

12.71 

10.96 

9.95 

94.6 

109.9 

94.3 

86.1 

Total 
(Average) 

^ 

Total 
(Average) 

71 

1,847,402 

167,592 

9.07 

73.5 

tinder  Uo 

Under  §20 
$20  to  Uo 
540  to   $60 
$60  i  over 

1 
10 
31 
29 

23,933 
282,873 
736,840 
748,751 

948 
30,241 
63,605 
67,793 

3.23 

10.69 

8.72 

9,05 

28.4 
92.5 
75.4 
73.3 

* 

Total 
(Average ) 

50 

2,777,177 

311,723 

11.22 

97.1 

Uadar  t20 
$20   to  Uo 
Uo  to  560 
§60  8t   ovor 

2 
15 
25 

e 

121,084 

893.474 

1,353,809 

403,810 

15,032 

91,978 

161,294 

43,419 

12.41 
10.29 
11.91 
10.62 

107.4 

Ho  to  $80 

103.0 
91.9 

Total 
(Average) 

23 

2,654,275 

322,173 

12.14 

105. 0 

Under  $20 
$20  to   $40 
Uo  to   $60 
$60  &  over 

1 

9 

10 

3 

170,641 
1,071,159 
1,104,553 

307,923 

19,092 
142,892 
125,641 

34,553 

11.19 
13.34 
11.37 
11.22 

96.8 
115.4 
96.4 
97.1 

^0  to  ^0 

1 

Total 
(Average) 

5 

1,694,810 

236,015 

13.93 

i 

120.5 

JlSO  i  over 

Under  $20 
$20  to  $40 
$40  to   $60 
$60  8:   over 

5 

1,694,310 

236,015 

13.93 

! 

'  120.5 

1 
I 

Average  $U.S6 


63 


amounts  of  selling  expense  per  $100 
of  total  net  sales  are  expressed  in 
terms  of  sales  per  $1  of  inventory,  as 
in  Table  26,  they  are  essentially  con- 
stant for  the  stores  with  annual  sales 
less  than  $180,000,  and  noticeably 
less  for  the  group  having  annual  sales 
of  $180,000  and  over.  This,  however, 
is  due  not  so  much  to  the  size  of  the 
store,  as  noted  above,  as  it  is  to  the 
size    of    the    inventory.    The    large 


stores  are  precisely  those  with  low  in- 
ventories per  $100  of  total  net  sales. 
When  selling  expense  is  expressed  in 
terms  of  sales  per  $1  of  inventor}', 
the  advantage  accruing  to  large  stores 
because  of  small  inventory  is  at  onca 
evident.  We  are  not  so  much  con- 
cerned here,  however,  with  the  selling 
expense  per  $100  of  total  net  sales  for 
stores  of  different  size  as  we  are  with 
the  amounts  for  stores  of  essentially 


TABLE  26 

AMOUNT  OP  SELLING  EXPENSE  PER  $100  OF  TOTAL  NET  SALES  FOR  THE  AMOUNT  SOLD 

PER  $1  OF  INVENTORY,  FOR  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT  OP 

INVENTORY  PER  $100  OF  TOTAL  NET  SALES,  1919,  1918,  AND  1914 


ATsrag*  iS.03 


the  same  size,  but  with  different 
amounts  of  inventory  in  relation  to 
sales.  If  the  comparisons  are  re- 
stricted to  selling  expense  in  terms  of 
sales  alone,  for  the  stores  of  the  same 
size,  but  with  varying  inventories,  it 
is  difficult  to  see  any  unmistakable 
tendency  for  the  selling  expense 
either  to  increase  or  decrease.     This 


is  noticeably  true  for  the  stores  with 
sales  under  $40,000.  For  the  stores 
with  annual  sales  of  $40,000  to  $80,- 
000,  however,  the  amounts  seem  to  in- 
crease with  the  size  of  the  inventory 
for  the  stores  having  inventories  less 
than  $60  per  $100  of  total  net  sales. 
On  the  other  hand,  an  inverse  condi- 
tion characterizes  the  stores  with  an- 


TABLE  27 

TOTAL   NET  SALES,  SELLING  EXPENSE,   AND  AMOUNT  OF  SELLING  EXPENSE  PER  $100 

OF   TOTAL   NET  SALES,   FOR   STORES   CLASSIFIED  BY   SIZE  AND   BY   AMOUNT 

OF    AVERAGE    STOCK    PER    $100    OF    TOTAL    NET    SALES,    1919 


Amount  of 

Averaro  Stock 

per  $100  of 

Total 

K«t  Saleo 

Number 

of 
Stores 

Total 
Het  Sales 

Total 
Selling 
Expense 

Selling  Expense  per  $100  of  Total  Net  Sales 

Classified 
Total 

Amount 

Per  Cent. 

(In  000' a) 

Graphic          Actual 
3  20  40  60  80  100  120  140 

Total 
(Average) 

124 

$18,301,848 

{1,928,893 

$10.54 

100.0 

i 

Total 

Under  JZO 
$20  to  f40 
540  S:  over 

13 
65 

46 

4,466,232 

10,722,916 

3,112,700 

557,827 

1,093,673 

277, 193 

12.49 
10.20 
8.91 

118.5 
96.8 
84.5 

(Averaee) 

: 

1 

1 
! 

! 

Total 
(AverBEo) 

16 

485,550 

32,474 

6.69 

63.5 

Dnder  fr40 

Under  tZO 
£20  to  J-iO 
J40  &  ovor 

7 
9 

229,242 

256,308 

15,387 
17,087 

6.71 
6.67 

63.7 
63.3 

Total 
(Average ) 

48 

2,747,107 

215,513 

7.65 

74.5 

UO   to  J80 

Under  f20 
$20  to  S40 
§40  ft  over 

3 
18 
27 

213,343 
1,044,586 
1,489,178 

17,503 
72,369 
125,641 

8.20 
6.93 
e.'i4 

i 

77.8 

C5.7 
80.1 

; 

Total 
(Avori-ee) 

36 

4,411,137 

448,296 

10.16 

96.4 

j 

Sec  to  $180 

Under  §20 
'20  to  $40 
'40  k   over 

3 

24 

9 

301,036 
2,974,765 
1,135,336 

25,147 
312,612 
110, 537 

8.35 

10.51 

9.74 

79.2 
99.7 
92.4 

1 

Total 
(Avfrace) 

24 

10,e50,054 

1,232,610 

11.  £7 

Sieo  U   over 

Unccr  J 2D 
C20  to  $40 
f40  t-   over 

7 

16 

1 

3,951,653 

515,177 

13.04 
10.71 
10.52 

123.7 

1C1.6 
97.9 

1     "'- 

Averasc  $10.64 


65 


nual  sales  of  $80,000  to  $180,000.  For 
the  largest  stores — those  with  annual 
sales  of  $180,000  and  over— the  in- 
stances are  insufficient  for  each  of  the 
inventorj'-groups  to  serve  as  a  basis 
for  generalization.  Tables  23  to  25 
show  similar  details  for  1919,  1918, 
and  1914,  respectively. 

"When,  however,  as  in  Table  26,  the 
selling  expenses  per  $100  of  total  net 
sales  are  shown  in  terms  of  the 
amount  sold  per  $1  of  inventory,  no 
such  uncertainty  as  to  direction  of 
change  from  inventory-group  to  in- 
ventory-group in  stores  of  different 
size  exists.  In  every  group  the 
amounts  grow  larger  as  the  amounts 
of  the  inventories  per  $100  of  total 
net  sales  increase.  This  does  not  hold 
alone  for  the  combined  years;  it  like- 
wise characterizes  the  selling  expense 
of  the  stores  in  1919,  1918,  and  1914. 
It  is  unnecessary  to  note  in  detail 
the  size  of  the  amounts  and  the  nature 
of  the  changes  from  store-group  to 
store-group  or  from  inventory-group 
to  inventory-group  for  each  of  the 
three  years.  Both  the  amounts  and 
changes  are  graphically  shown  in 
Table  26. 

The  outstanding  fact  shown  by 
this  graphic  summary,  for  the  vari- 
ous groups  of  stores,  is  the  similarity 
of  the  increases  in  the  selling  expense 
per  $100  of  total  net  sales  per  amount 
sold  per  $1  of  inventory  in  each  of 
the  three  years.  From  these  arrays 
it  seems  safe  to  conclude  for  stores 
which  do  a  given  amount  of  business, 
that  the  selling  expenses  per  $100  of 
sales  for  the  amount  sold  per  $1  of 
inventory  decrease  as  the  inventories 


in  terms  of  sales  are  reduced.  This 
is  only  another  way  of  saying  that 
selling  expense  may  be  reduced  in 
terms  of  sales  by  increasing  the 
rapidity  with  which  stock,  as  shown 
by  size  of  inventories,  is  turned. 
Moreover,  it  suggests  at  once  the 
soundness  of  the  conclusion  found  in 
the  Bureau's  study  on  Costs,  Mer- 
chandising Practices,  Advertising  and 
Sale9  in  the  Retail  Distribution  of 
Clothing  that  the  more  rapid  turnover 
of  stock  in  the  large  stores  is  a  com- 
pensating feature  for  the  increased 
costs  of  doing  business  in  these  stores.* 
In  addition,  it  connects  up,  in  a  very 
definite  way,  selling  expense,  sales, 
and  the  size  of  the  inventory. 

The  relationship  between  the 
amount  of  stock  carried  per  $100  of 
total  net  sales  and  the  selling  expense 
in  terms  of  sales  may  be  tested  by 
classifying  the  stores  according  to  the 
amount  of  average  stock  carried.f 
This  is  done  in  Table  27.  The  records 
of  124  stores  are  available  for  such  a 
study.  While  it  cost,  on  the  average 
in  1919,  $10.54  to  sell  $100  worth  of 
goods,    the    corresponding    cost    for 

*  It  is  true  that  a  comparison  of  inven- 
tories, on  a  cost  basis,  with  sales  of  goods  at 
selling  price,  does  not  suffice  to  measure 
properly  stock  turns.  If  the  annual  inven- 
tory at  the  close  of  the  year  is  taken  roughly 
to  represent  the  average  stock  carried 
throughout  the  year,  such  a  comparison 
serves  to  measure  capital  turn.  The  rela- 
tionships between  the  annual  stock  and 
annual  capital  turns  for  1919  are  shown  in 
Volume  V  of  the  Bureau 's  study  of  Costs, 
Merchandising  Practices,  Advertising  and 
Sales  in  the  Eetail  Distribution  of  Clothing, 
pp.  488  to  492. 

■f  To  determine  the  average  stock  carried, 
merchants  were  directed  to  add  together  the 
amounts  of  stock  on  hand  at  the  close  of 
each  month  and  divide  by  12. 


66 


TABLE  28 

TOTAL  NET  SALES,  im'ENTORY,  AND  AMOUNT  OF  INVENTORY  PER  $100  OP  TOTAL  NET 

S.VLES,  FOR  149   IDENTICAL  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT 

OF    SELLING    EXPENSE    PER    $100    OF    TOTAL    NET    SALES, 

1919,     1918,    AND    1914,    COMBINED 


Claeslf lad 

Total 
Nat  Sales 
(in  000' 3) 


Total 
(Average) 


(Alder  S40 


i40  to  tao 


$aO  to  $130 


llSO  &  over 


Ajnoimt  of 

Selling 

E;toon39 

per  JlOO  of 

Total 

(Jot  Sales 


Total 
(Average) 


Onder  J6 

§6  to  $12 
$12  &  over 


Total 
(Average) 


Under  $6 

$5  to  |12 
Sl2  8t  over 


Totol 
(Average) 


Under  |6 

$6  to  812 
$12  i  over 


Store- 
years 


2-17 
107 


Total 
(Averaje) 


Under  $6 
$6  to  $12 
$12  k   over 


Total 
(Avorsse) 


Under  $5 
$6  to  C12 
$12  i  over 


Total 
Hot  Sales 


J4J,500,972 


4,247,831 
26,191,?56 

13,160,895 


3,532,911 


1,196,433 

1,765,845 

570,623 


9,360,348 


2,255,483 
5,029,311 
2,075,554 


Total 
Inventory 


516,369,406 


1,930,599 
9,702,173 
4,736,634 


1,989,513 


690,355 
963,401 
335,762 


4,254,795 


978,714 

2,341,134 

934,897 


13,121,494 


795,910 
7,966,900 
4,353,684 


17,585,219 


11,429,200 
6,156,019 


5,193,li: 


261,530 
3,260,280 
1,671,321 


4,931,962 


3,137,308 
1,794,654 


Inventory  per  $100  of  Total  Net  Sales 


39.58 


32.86 
40.92 
38.34 


27.45 
29.15 


$37.54 


45.15 
37.04 
35.99 


56.31 


57.70 
54.56 
58.34 


45.46 


43.39 
46. SS 
45.04 


Graphic 


100.0 


121.1 
98.7 
95.9 

150.0 

153.7 
145.3 
155.7 


121.1 

U5.5 
124.0 
120.0 


105.4 

87.5 
109.0 
102.1 


74.7 


73.1 
77.7 


Average  $37.54 


Stores  with  average  stock  un(ier  $20 
per  $100  of  total  net  sales  was  $12.49. 
For  those  with  average  stock  of  $20 
to  $40  per  $100  of  total  net  sales  it 
was  $10.20,  while  for  those  with  aver- 
age stock  of  $40  and  over  it  was  $8.91. 
This  ten(iency  to  (iecrease,  however, 
is  due  to  the  size  of  the  store  rather 


than  to  the  amount  of  stock  carried. 
By  expressing  the  selling  expense  in 
relation  to  sales  for  a  given  amount 
sold  for  each  dollar  of  average  stock, 
the  $10.54  given  above  drops  to  $3.06. 
The  amounts  for  the  stores,  classified 
by  the  relative  size  of  the  stock  car- 
ried, increase  from  $1.87,  for  those 


67 


TABLE  29 

TOTAL  NET  SALES,  INVENTORY,  AND  AMOUNT  OF  INVENTORY  PER  $100  OF  TOTAL  NET 
SALES,  FOR  149  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT  OF  SELL- 
ING EXPENSE  PER  $100  OF  TOTAL  NET  SALES,  1919 


Classified 

Total 
net  Salee 

Amount  of 

Selling 

Expense 

per  ?1C0  of 

Total 

Net  Sales 

Number 

of 
Stores 

Total 
Net  Sales 

Total 
Inventory 

Inventory  per  $100  of  Total  Net  Sales 

Amount 

Per  Cent. 

(In  OOO'e) 

Graphic 
S  20  40  60  60  100  120  140  160  18C 

Actual 

Total 
(Average) 

Under  $6 

$6  to  $12 
$12  &  over 

149 

$20,303,641 

$6,667,056 

$32.84 

100.0 

58 

80 
31 

2,522,782 

12,418,163 

5,562,696 

679,810 
4,055,317 
1,731,929 

57.88 
52,66 
31.15 

115.5 
99.S 
94.8 

Total 
(Average) 

', 

i 

Total 
(Average) 

14 

428,714 

215,607 

50.29 

153.1 

i 

Dnder  ^0 

Under  J6 
$6  to  $12 

$12  i  over 

5 
9 

140,498 
268,216 

81,658 
133,969 

58.11 
46.48 

176.9 
141.5 

1 

Total 
(Average) 

55 

3,082,152 

1,280,953 

41.56 

126.6 

Uo  to  4eo 

Dnder  $6 

$6  to  $12 
$12  5:  over 

25 
23 

7 

1,386,374 

1,319,132 

376,646 

536,642 
595,425 
150,888 

38.71 
44.99 
40.06 

117.9 
137.0 
122.0 

: 

i 

Total 
(Avorage) 

56 

6,607.089 

2,366,933 

35.82 

109.1 

; 

$80  to  $180 

Dnder  $6 

$6  to  $12 
$12  8c  over 

8 
30 
IS 

795,910 
5,633,935 
2,177,244 

261,530 

1,350,781 

754,622 

32.86 
57.17 

34.66 

100.1 
113.2 
105.  S 

Total 
(Average) 

£4 

10,185,686 

2,803,563 

27.52 

83.8 

j 

llflo  tc   over 

Dnder  $6 
(6  to  $12 

$12  &  over 

18 
6 

7,176,880 
3,006,806 

1,977,144 
826,419 

27.55 
27.47 

83.9 
83.6 

: 

Average  $32.84 


•with  average  stock  under  $20,  to  $4.46 
for  those  with  average  stock  of  $40 
and  over  per  $100  of  total  net  sales. 
The  same  tendency  which  was  ob- 
served to  characterize  stores  with  in- 
creasing inventories  likewise  applies 
to  stores  with  increasing  average 
stock  in  relation  to  sales. 

In  the  discussion  of  Table  20  it  was 


observed,  for  the  combined  and  for 
the  individual  years,  that  the  amounts 
of  inventory  per  $100  of  total  net 
sales  decrease  as  the  amounts  of  sell- 
ing expense  per  $100  of  total  net  sales 
increase.  When  the  stores  are  classi- 
fied by  size,  as  in  Tables  28  to  31,  this 
tendency  is  less  certain. 

From  the  foregoing  discussion  of 


68 


TABLE  30 

TOTAL  NET  SALES,  INVENTORY,  AND  AMOUNT  OF  INVENTORY  PER  $100  OP  TOTAL  NET 
SALES,  FOR  149  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT  OF  SELL- 
ING EXPENSE  PER  $100  OF  TOTAL  NET  SALES,  1918 


Classified 

Total 
Net  Salop 

Amount  of 

Selling 

Expense 

per  $100  of 

Total 

Net  Sales 

Hijmbor 

of 
Stores 

Total 
Net  Sales 

Total 
Inventory 

Inventory  per  $100  of  Total  Net  Sales 

Amount 

Per  Cent. 

Graphic             1 

1  Actual 
?  20   40  60  80  100  120  140  160 

Total 
(Average) 

149 

$14,322,667 

$5,804,340 

$40.53 

1 

100.0 

Under  $6 
$6  to  $12 

$12  &  over 

30 

86 
J3 

1, 187, 535 
9,197,600 
3,937,332 

653,961 

3,650,841 

"1,499,538 

55.07 
39.69 
38.09 

135.9 
97.9 
94.0 

total 
(Average ) 

; 

; 

i 

Total 
(Average ) 

42 

1,256,795 

734, 523 

58,44 

144.2 

Chder  $6 

$6  to  $12 
$12  tc   over 

16 
20 
6 

463,643 
601,649 
191,503 

266,299 
359,296 
106,928 

57.44 
59.72 
66.88 

141.7 

147.5 
140.5 

Under  $40 

Total 
(Average) 

60 

'  3,501,019 

1,729,460 

49.40 

121.9 

Under  $6 

$6  to  $12 
$12  &  over 

14 
34 

12 

723,692 

1,970,722 

606,405 

587,662 
954,790 
387,006 

53.55 
48.45 
47.99 

132.1 

119.5 
118.4 

$40  to  *eo 

1 

Total 
(Average ) 

33 

3,860,130 

1,741,562 

45.12 

46.25 
42.31 

111.3 

i 

$80  to  $180 

Under  $6 

$6  to  $12 
$12  &  over 

23 
10 

2,749,060 
1,111,070 

1,271,499 
470,063 

114.1 
104.4 

; 

Total 
(Average ) 

14 

5,704,723 

1,598,795 

28.03 

69.2 

$180  &  over 

Under  $6 

$6  to  $12 
$12  &  over 

e 

5 

5,876,369 
1,826,354 

1,065,256 
533, 539 

27.46 
29.18 

67.8 
72.0 

Average  $40.53 


the  amounts  of  selling  expense  per 
$100  of  total  net  sales  and  per  $100 
of  total  net  sales  for  the  amount  sold 
for  each  unit  of  inventory,  for  stores 
of  different  size  and  having  different 
amounts  of  inventory  per  $100  of 
total  net  sales,  it  may  be  concluded: 
First,  that  for  the  combined  and  for 


the  individual  years,  the  amounts  of 
selling  expense  per  $100  of  total  net 
sales  increase  as  the  size  of  the  stores 
increases.  Second,  that  for  a  given 
store  size,  the  amounts  of  selling  ex- 
pense per  $100  of  total  net  sales  do 
not  show  an  unmistakable  tendency 
either  to  increase  or  to  decrease  as 


69 


TABLE  31 

TOTAL  NET  SALES,  INVENTORY,  AND  AMOUNT  OF  INVENTORY  PER  $100  OP  TOTAL  NET 
SALES,  FOR  149  STORES  CL-N.SSIFIED  BY  SIZE  AND  BY  AMOUNT  OF  SELL- 
ING  EXPENSE   PER   $100    OF    TOTAL    NET    SALES,    1914 


Amount  of 

Selling 

Exponae 

per  SlOO  of 

Total 

net  Salea 

Himbar 

of 
Stores 

Total 
Hot  Sales 

Total 

Inventory 

Inventory  per  $100  of  Total  Net  Sales 

'   Total 
llet  Salea 

AmD'jnt 

Per  Cent. 

(in  000' s) 

Graphic 

Actual 

3   20   40   60   80  100  120  140 

Total 
(Average) 

149 

$3,973,664 

$3,393,010 

$43.44 

100.0 

Total 

Under  $6 

$6  to  $12 
$12  &  over 

25 
81 
43 

737,514 
4,575,293 

3,660,857 

396,328 
1,996,015 
1,505,157 

53.31 
43.63 
41.12 

123.9 

100.4 

94.7 

{Average ) 

Total 
(Average) 

71 

1,847,402 

1,039,383 

56.26 

129.5 

Onder  $40 

Under  $6 

$6  to  $12 
$12  i  over 

22 
35 

14 

532,297 
875,930 
379, 125 

342,413 
470,136 
226,834 

57.31 
53.67 
59.33 

133.1 

123.5 
137.7 

Total 
(Average) 

50 

2,777,177 

1,244,532 

44.81 

103.2 

$40  to  $80 

Under  $6 

$6  to  $12 
§12  &  over 

3 

31 

16 

145,217 

1,739,457 

892,503 

54,410 
792,971 
397,001 

37.47 
45.59 
44.48 

86.3 
104.9 
102.4 

Total 
(Average ) 

23 

2,654,275 

1,034,635 

40.86 

94.1 

$80  to  $180 

Under  $6 
$6  to  $12 
$12  tc   over 

13 
10 

1,583,905 
1,070,370 

638,000 
445,635 

40.23 
41.73 

92.7 

96.1 

Total 
(Average ) 

5 

1,694,310 

529,604 

31.25 

71.9 

$160  2c  over 

Under  $6 

$6  to  $12 
$12  &  over 

2 

3 

375,951 
1,313,959 

94,908 
434.696 

25.24 

32.96 

53.1 
75.9 

Average  $43.44 


the  amounts  of  inventory  per  $100 
of  total  net  sales  increase.  Third, 
that  the  amounts  of  selling  expense 
per  $100  of  total  net  sales  for  the 
amount  sold  for  each  $1  of  inventory 
increase  with  the  size  of  the  inventory 
for  stores  of  all  sizes.    Fourth,  that 


the  amounts  of  inventory  per  $100 
of  total  net  sales  decrease  as  the 
amounts  of  selling  expense  per  $100 
of  total  net  sales  increase. 

The  practical  aspects  of  these  con- 
clusions may  be  expressed  as  follows : 
If  it  is  desired  to  decrease  the  amount 


70 


TABLE  32 

TOTAL   EXPENSE,    SELLING   EXPENSE,    AND   AMOUNT    OF    SELLING   EXPENSE    PER   $100 

OF    TOTAL    EXPENSE,    FOR    149    IDENTICAL    STORES    CLASSIFIED    BY    SIZE 

AND  BY  AMOUNT  OF  INVENTORY  PER  $100  OF  TOTAL  NET 

SALES,    1919,    1918,    AND    1914,    COMBINED 


Classified 

Totel 
Net  Sales 

(m  ooo'b) 


Amoiiit  of 

Inventory 

per  3100  of 

Total 

IJet  Sales 


Etore- 
yeara 


Total 
Expense 


Total 
Selling 
Expense 


Selling  Expense  per  JlOO  of  Total  Expense 


Graphic 


0     20      40     60     80   100   120 

''I'll 


Total 
(Average) 


447 


J9, 450, 641 


}, 745, 629 


Total 
(Average ) 


Dtoder  $20 
$20  to  |40 
^0  to  t60 
560  i  over 


14 
168 
177 

88 


363,310 
5,606,522 
2,456,515 

624,496 


172,900 
3,086,085 
1,128,967 

555,877 


724,495 


298,231 


Dnder  ^0 
320  to  J40 
$40  to  $60 
$60  £c  over 


1 
18 
52 
56 


3,315 
104,594 
505,231 

511,357 


948 

5'{,036 

112,294 

130,953 


$40  to 


Total 
(Average) 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 


1,690,810 


877,524 


6 
52 
62 
25 


78,735 
567,892 
923,878 
300,307 


29,622 
283,795 
426,579 
135,526 


Total 
(Average) 


2,809,487 


1,445,029 


$60  to  $180 


Under  $20 
$20  to  $40 
$40  to  $60 
$60  £;  over 


5 
60 
40 

7 


101,792 
1,468,341 
1,026,522 

212,832 


53,599 
602,575 
499, 659 

89,596 


Total 
(Average ) 


4,025,849 


2,125,045 


$160  &  over 


Under  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 


2 

38 

3 


179,472 

3,645,495 

200,682 


88,931 

1,947,679 

68,435 


$50.22 


47.59 
53.18 

45.96 
43.16 


41.16 


26.61 
51.66 
36.79 

42.06 


46.41 


37.62 
48.27 
46.39 
45.13 


51.43 


52.46 
54.66 
48.67 
42.00 


52.79 


49.55 
53.43 
44.02 


100.0 


94.8 

105.9 

91.5 

65.9 


62.0 


57.0 
102,9 
73.3 
63.8 


92.4 

74.9 
96.1 
92.4 
89.9 


102.4 

104.5 

108.8 

96.9 

83.6 


105.1 

98.7 

106.4 
67.7 


Averaee  $50.22 


71 


of  selling  expense  when  expressed  in 
terms  of  sales,  one  method  by  which 
it  may  be  done  is  to  reduce  the 
amount  of  inventory  in  relation  to 
sales.  How  completely  such  a  reduc- 
tion is  within  the  power  of  the  indi- 
vidual merchant  it  is  difficult  to  say. 
The  study  by  the  Bureau  of  Business 
Research,  however,  leads  to  the  con- 
clusion that  in  many  instances  the 
inventories  in  terms  of  sales  are 
unnecessarily  large,  as  a  result  of 
unscientific  purchasing  or  through 
failure  to  secure  sales.  In  this  con- 
nection the  fifth  volume  of  the 
Bureau's  study  of  Costs,  Merchandis- 
ing Practices,  Advertising  and  Sales 
in  the  Retail  Distrihutian  of  Clothing, 
which  has  to  do  with  purchases  and 
turnover,  may  be  consulted  for  a 
more  detailed  treatment  of  this  par- 
ticular phase  of  the  subject. 

Selling  expense  may  also  be  ex- 
pressed in  terms  of  total  operating 
expense.  Out  of  every  $100  of  total 
expense,  $50.22,  on  the  average  for 
the  three  years,  for  the  149  identical 
stores  under  consideration,  was  ex- 
pended for  selling  as  the  term  is  used 
in  this  volume.  For  the  stores  with 
sales  under  $40,000  the  amount  was 
$41.16;  for  those  with  sales  of  $40,- 
000  to  $80,000  it  was  $46.41;  for 
those  with  sales  of  $80,000  to  $180,000 
it  was  $51.43;  and  for  those  with 
sales  of  $180,000  and  over  it  was 
$52.79.  That  is,  as  the  stores  increase 
in  size,  selling  expense  becomes  an 
increasing  proportion  of  total  operat- 
ing expense.  For  the  group  of  small- 
est stores,  the  amount  was  82.0  per 
cent.,  and  for  th(;  group  of  largest 


stores,  105.1  per  cent,  of  the  average 
for  all  stores. 

Do  the  amounts  of  selling  expense 
per  $100  of  total  expense  tend  to 
become  larger  or  smaller  proportion- 
ately for  these  stores  as  the  amounts 
of  inventory  in  relation  to  sales  in- 
crease? When  the  stores  are  con- 
sidered as  a  whole,  Table  32  shows 
that  the  amounts  of  selling  expense 
per  $100  of  total  operating  expense 
decrease  as  inventories  in  terms  of 
sales  increase.  Moreover,  this  condi- 
tion generally  holds  for  stores  when 
classified  by  size.  If  the  amounts  of 
selling  expense  per  $100  of  total  ex- 
pense are  expressed  in  terms  of  the 
amount  sold  per  $1  of  inventory,  the 
direction  of  change  from  inventory- 
group  to  inventory-group  is  unmis- 
takable. While  it  cost  $47.59  on  the 
average  during  the  three  years  for 
every  $100  of  total  expense  for  stores 
having  inventories  under  $20  per 
$100  of  total  net  sales,  it  cost  but 
$8.33  when  the  selling  expense,  so 
expressed,  is  determined  for  the 
amount  sold  per  $1  of  inventory. 
From  this  minimum  the  amounts 
rapidly  increase  to  $30.18  for  stores 
with  inventories  of  $60  and  over  per 
$100  of  total  net  sales. 

This  condition  holds  not  only  for 
stores  unclassified  as  to  size,  but  is 
also  true  when  they  are  classified  in 
the  customary  groups  according  to 
sales.  Perhaps  the  relations  between 
selling  expense  and  total  expense,  in 
stores  having  different  amounts  of 
inventory  in  relation  to  sales,  will  be 
understood  more  readily  if  the  results 
of  the  analysis  are  put  as  follows: 


72 


TABLE  33 

TOTAL  EXPENSE,  SELLING  EXPENSE,  AND  AMOUNT  OF  SELLING  EXPENSE  PER  $100  OP 

TOTAL  EXPENSE,  FOR  149  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT 

OF  INVENTORY   PER  $100   OF  TOTAL   NET   SAliES,    1919 


Classified 

Total 
Net  Sales 

Amount  of 

Inventory 

per  SlOO  of 

Total 

Net  Sales 

Ilwibor 

of 
Stores 

Total 
Expense 

Totsvl 
Selling 

Expense 

Selling  Expense  per  $100  of  Total  iixpenae 

Amount 

Per  Cent. 

(In  OOO's) 

Graphic          .  ^   , 
Actual 

3  ?.0      40   60   eo  100  120 

Total 
(Avor-.ce ) 

149 

$4,160,820 

$2,135,072 

$51.22 

100.0 

Under  520 
$20  to  $40 
$40  to  $60 
$60  &  over 

7 
83 
51 

8 

209,266 

3,117,375 

751,639 

90,540 

105,711 

1,649,518 

345,965 

33,878 

50.52 
52.91 
46.03 
37.42 

98.5 

103.3 

89.9 

73.1 

Total 
(Average ) 

! 

i 

Total 
(Average) 

14 

76,2:.7 

29,018 

38.06 

74.3 

Under  $40 

Under  $20 
$20  to  $40 
$40  to  $60 
*;60  It   over 

2 
8 
4 

14,142 
47, 188 
14, 907 

6,275 

15,797 

6,946 

44.37 
33.48 
46.60 

86.5 
65.4 
91.0 

1 

Total 
(i.veruge) 

55 

536,  176 

233,843 

43.61 

85.1 

^^^""""^^ 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  J:  over 

2 
22 

28 
S 

16,881 
208,870 

276,474 
33, 951 

7,320 

94,720 

122,592 

9,211 

43.36 
45.35 
44.34 
27.13 

^^^^^ 

84.7 
88.5 
86.5 
53.0 

$40  to  580 

i 

Total 
(Avers-ge) 

56 

1,326,311 

700,800 

52.84 

103.2 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  i-.  over 

4 
37 
14 

1 

67,086 
860,490 
357,053 

41,682 

34,307 
465, 124 
183, 648 

17,721 

51.14 
54.05 
51.43 
42.51 

99.0 
105.5 
100.4 

33.0 

$80  to  $180 

1 

Total 
(Average ) 

24 

2,230,096 

1,171,411 

62.53 

102.5 

! 

Under  $20 
$20  to  $40 
$40  to  $60 
$50  &  over 

1 
22 

1 

125,299 

2,033,873 

70,924 

64,084 

1,083,399 

23,928 

51.14 
53.27 
33.74 

99.8 

104.0 

65.9 

vl30  &  over 

; 

Average  $51.22 


73 


TABLE  34 

TOTAL  EXPENSE,  SELLING  EXPENSE,  AND  AMOUNT  OF  SELLING  EXPENSE  PER  $100  OF 

TOTAL  EXPENSE,  FOR  149  STORES  CLASSIFIED  BY   SIZE  AND  BY  AMOUNT 

OF   INVENTORY   PER  $100   OF   TOTAL   NET    SALES,    1918 


Claselfled 

Total 
Ket  sales 

Airount  of 

Inventory 

per  $100  of 

Total 

Net  Sales 

Number 

of 
Stores 

Total 
Expense 

Total 
Selling 
Expense 

Selling  Expense  per  $100  of  Total  Expense 

Amoimt 

Per  Cent. 

(In  coo's) 

'^^^P^^'^         1   Actnal 
0   CO   40   60  80  100  12o' 

Total 
(Average ) 

149 

ti, 163, 345 

$1,573,249 

$49.75 

100.0 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  k   over 

3 
46 
60 
40 

81,440 

1,728,776 

950,082 

405,047 

32,117 
937,441 
427,462 
176,229 

39.44 
54.23 
44.99 
43.T8 

79.3 

109.0 

90.5 

87.9 

Total 
(Average) 

1 

Total 
(Average) 

42 

248,315 

101,621 

40.92 

82.3 

j 

Under  $40 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

6 
IS 
23 

52,127 

61,880 

154,308 

17,520 
27,892 
66,209 

54.53 
34.06 
41.85 

109.7 
68.5 
84.2 

Total 
(Average) 

60 

719,568 

331,958 

46.13 

92.8 

— 

$40  to  $80 

Under  $20 
$20  to  $40 
$40  to  $60 
560  li   over 

2 

15 
29 
14 

27,267 
187,585 
329, 9e0 
174,756 

7,270 

87,097 

144,695 

82,898 

26.66 
51.76 
43.85 
47.44 

53.6 

104.1 

88.2 

95.4 

1 

^^^1 

i 

Total 
(Aver&ge) 

33 

862,014 

422,051 

48.96 

98.5 

j 

$80  to  $180 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

14 

16 

3 

359,747 

408,284 

93,983 

194,559 

190,370 

37,122 

54.08 
46.63 
39.50 

108.7 
95.8 
79.4 

Total 
(Average) 

14 

1,333,448 

717,619 

53.82 

108.2 

Ondep  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

1 

11 

2 

54,173 

1,149,317 

129,958 

24,847 

628,265 

64,507 

45.87 
54.66 
49.64 

92.2 

109.9 

99.9 

$180  &  over 

Average  £49.73 


74 


The  selling  expense  per  $100  of  total 
expense  for  the  amount  sold  per  $1 
of  inventory  is  $8.33,  when  the  in- 
ventory per  $100  of  total  net  sales  is 
less  than  $20.  When  the  inventory 
is  between  $20  and  $40  the  amount  is 
$15.96,  and  when  the  inventory  is 
$60  and  over  the  amount  increases  to 
$30.18. 

Tables  32  to  35,  inclusive,  show 
that  selling  expense  becomes  a  pro- 
portionately larger  part  of  total  ex- 
pense as  stores  increase  in  size.  On 
the  other  hand,  it  is  large  stores  that 
have  relatively  small  inventories  in 
terms  of  sales.  Accordingly,  when 
the  stores  are  classified  by  the 
amounts  of  inventory  in  relation  to 
sales,  the  amounts  of  selling  expense 
per  $100  of  total  expense  decrease  as 
is  shown  in  the  total  sections  of  these 
tables.  The  large  stores  seem  to  be 
operating  at  a  disadvantage  so  far  as 
this  proportion  is  concerned.  On  the 
other  hand,  when  the  selling  expense 
per  $100  of  total  expense  is  related 
to  the  amounts  sold  per  $1  of  inven- 
tory, an  inverse  condition  obtains. 
The  selling  expense  of  the  stores 
having  the  small  inventories — the 
large  stores — rather  than  being  rela- 
tively large  is  relatively  small,  the 
amount  for  the  stores  with  inventories 
averaging  less  than  $20  per  $100  of 
total  net  sales  being  only  slightly 
more  than  one-fourth  as  large  as  the 
amount  for  those  stores  with  inven- 
tories of  $60  and  over.  After  all,  it 
is  the  amount  of  sales  which  produces 
profits,  and  which  suggests,  in  this 
connection,  the  wisdom  of  low  in- 
ventories. 


C. — Yearly  Amounts  of  Selling  Ex- 
pense per  $100  of  Total  Net  Sales 
and  per  $100  of  Total  Expense, 
for  Stores  Classified  by  Rates  of 
Stock    Turnover    and    by    Size, 
1919. 
The  records  of  282  stores  for  the 
year  1919  are  available  for  the  study 
of  the  relation  of  selling  expense  to 
total  net  sales  and  to  total  expense 
according  to  the  rates  of  stock  turn- 
over which  the  stores  had  in  this  year. 
The  annual  stock  turnover  rates  are 
computed  by  dividing  the  total  cost 
of  merchandise  sold  during  the  year 
by  the  average  of  inventories  taken 
at  cost  at  the  close  of  the  years  1918 
and    1919.      "Cost    of    merchandise 
sold"  is  determined  by  adding  to  the 
1918   inventory  the   purchases,   plus 
the  freight  and  cartage,  less  returns 
to  manufacturers,  1919,  and  deduct- 
ing therefrom  the  1919  inventory. 

In  Table  36  the  282  stores,  without 
respect  to  size,  are  classified  accord- 
ing to  the  annual  rates  of  stock  turn- 
over. Nine  of  the  stores  turned  their 
stock  on  an  average  less  than  once, 
136  between  one  and  two  times,  100 
between  two  and  three  times,  23  be- 
tween three  and  four  times,  and  14, 
four  times  and  more.  The  average 
number  of  stock  turns  for  the  stores 
as  a  whole  was  2.2.  This  figure  closely 
agrees  with  that  for  a  somewhat  larger 
number  of  stores,  the  stock  turns  of 
which  are  discussed  in  Volume  V  * 
of  the  Bureau's  study  on  Costs,  Mer- 
chandising Practices,  Advertising  and 
Sales  in  the  Eetail  Distributio-n  of 
Clothing. 

*  pp.  464  ff. 


75 


TABLE  35 

TOTAL  EXPENSE,  SELLING  EXPENSE,  AND  AMOUNT  OF  SELLING  EXPENSE  PER  $100  OP 

TOTAL  EXPENSE,  FOR  149  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT 

OF  INVENTORY  PER   $100   OF   TOTAL   NET   SALES,    1914 


Classified 

Total 
Net  Sales 
(In  OOO's) 


Total 
(Average) 


Under  $40 


|40  to 


to  $130 


$180  8t  over 


Amount  of 

Inventory 

per  JlOO  of 

Total 

net  Sales 


Total 
(Average ) 


Under  $20 
$20  to  $40 
$40   to   $60 
$60  3c  over 


Total 
(Average) 


Under  $20 
:^20  to  $40 
$40  to  $50 
$60  &  over 


Humber 

of 
Stores 


Total 
(Average ) 


Under  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 


Total 
(Average ) 


Under  $20 
$20  to  $40 
$40  to  $60 
$60  4:  over 


Total 
(Average ) 


Under  $20 
$20  to  $40 
$40  to  $60 
$60  li   over 


Total 
Expense 


$2,118,476 

72,604 
960,171 
754,792 
330,909 


399,943 


3,313 

58,325 

176,163 

162,142 


635,066 


34,585 
191,437 
317,444 

91,600 


621,152 


34,706 
248,104 
251,185 

77,167 


462,305 


462,305 


Total 
Selling 
Expense 


Selling  Expense  per  '^100  of  Total  Expense 


$1,037,508 

35,072 
601,126 
355,540 
145,770 


167,592 


948 
30,241 
68,605 
67,798 


311,723 


Graphic 
0   20   40   60   80  100  120 


15,032 

91,978 

161,294 

43,419 


322,178 


19,092 
143,692 
125,601 

34,553 


256,015 


236,015 


$49.97 

48.31 
52.19 
47.10 
44.05 


41.90 


23.61 
51.85 
38.94 
41.81 


49.09 


43.46 
48.05 
50.31 
47.40 


51.87 


55.01 
57.59 
48.10 
44.73 


100.0 


93.7 

106.6 

96.2 

90.0 


85.6 

53.4 

105.9 

79.5 

35.4 


93.1 

103.8 

96.8 


105.9 


112.3 

117.6 

93.8 

91.4 


Average  $48.97 


76 


The  average  selling  expense  per 
$100  of  total  net  sales  for  these  stores 
is  $10.16.  For  those  with  less  than 
one  turn  it  is  $7.66  and  from  this 
amount  as  a  minimum  the  selling 
expense  increases  for  each  group  of 
stores  classified  by  rates  at  which 
stock  was  turned  until  the  stores  with 
between  three  and  four  turns  are  en- 
countered. The  average  for  this 
group  is  $11.47.  For  those  having 
four  or  more  turns,  the  corresponding 
amount  is  $8.64.  A  casual  inspection 
of  this  table  would  seem  to  indicate 
that  the  stores  having  low  turnover 
rates  are  in  an  advantageous  position 
so  far  as  selling  expense  is  concerned. 
This  is  not  the  case,  however,  when 
the  number  of  turns  made  is  taken 
into  consideration.  This  latter  point 
of  view  is  developed  in  the  column 
of  the  table  with  the  caption,  * '  Selling 
expense  per  $100  of  total  net  sales 
per  stock  turnover. ' '  *     The  average 

*  The  method  by  which  this  unit  is  com- 
puted is  explained  on  page  4,  item  19. 


amount  of  selling  expense  so  ex- 
pressed for  the  entire  group  is  $4.62. 
For  the  stores  which  turned  their 
stock  less  than  once  it  is  $10.21,  and 
from  this  figure  as  a  maximum  the 
amounts  rapidly  decrease  to  $1.73  for 
those  stores  having  four  or  more 
annual  turns. 

These  decreasing  amounts  of  selling 
expense  in  relation  to  sales  per  stock 
turnover  immediately  suggest  the 
saving  which  is  possible  to  stores  by 
increasing  the  rates  at  which  they 
turn  their  stock.  After  all,  the 
amounts  of  selling  expense  in  terms 
of  sales  alone  do  not  tell  a  complete 
story.  It  is  only  when  such  expense 
is  expressed  on  a  unit  basis  that  the 
true  comparative  significance  of  the 
costs  for  stores  operating  under  dif- 
ferent conditions  is  revealed. 

Table  36,  moreover,  needs  to  be 
considered  in  connection  with  the 
foregoing  tables  in  which  the  size  of 
stores  is  considered  from  the  point  of 
view  of  selling  expense.    It  has  been 


TABLE  36 

AMOUNT  OF  SELLING  EXPENSE  PER  $100  OP  TOTAL  NET  SALES  PER  STOCK  TURNOVER, 
FOR  STORES  CLASSIFIED  BY  RATES  OF  STOCK  TURNOVER,  1919 


Rates  of 

Stock 
Turnover 


Total 
(Average ) 


Onder  1 

1  to  2 

2  to  9 
9  to  « 

4  h  over 


Nvanber 

of 
Stores 


9 

136 

100 

23 

14 


Selling  Expense  per  $100  of 
Total  Net  Sales 


fer  Cent. 


Qraphlo 
20  40  60  80  100  120 


♦10.16 


7.66 
9.60 
10.60 
11.47 
8.64 


100.0 


75.4 

94. S 

104.3 

112.9 

85.0 


Average  flO.ie 


Selling  Expense  per  $100  of  Total  Net  Sales 
per  Stock  Turnover 


Graphic 
0  20  40  60  80  100  120  140 


$4.62 

10.21 
6.40 
4.24 
3.13 
1.79 


ICO.O 


221.0' 

158.5 

91.3 

67.7 

57.4 


Average  $4.62 

Pull  length  not  shown 


77 


TABLE  37 

TOTAL  NET  SALES,   SELLING  EXPENSE,   AND  AMOUNT  OF   SELLING  EXPENSE  PER  $100 

OF    TOTAL    NET   SALES,   FOR   STORES    CLASSIFIED    BY    RATES    OP 

STOCK   TURNOVER  AND   BY   SIZE,   1919 


Classified 

Total 
Hot  Sales 
(m  COO'e) 

Number 

of 
Stores 

Total 
Net  Sales 

Total 
Selling 
Expense 

Selling  Expense  per  $100  of  To\,al  Hot  Sales 

Ratea  of 

Stock 
Tvimover 

Amoiuit 

Per  Cent. 

Graphic                          ^,^,^^ 
D     20      40      60      80   100   120   140 

Total 
(Average ) 

282 

$35,563,014 

$3,611,688 

$10.16 

100.0 

IHHaB^ 

Total 
(Average) 

Under  $40 
$40  to    eso 

fcO  to  Jl80 
$180  &  over 

33 

106 

98 

45 

1,012,152 

6,020,400 

11,667,072 

16,863,390 

60,684 

448,806 

1,185,724 

1,916,474 

6.00 
7.45 
10.16 
11.57 

59.1 
73.3 
100,0 
111.9 

; 

^1^^^^ 

Total 
(Average) 

'      9 

601,109 

46,063 

7.66 

75.4 

Dndor  1 

tJnder  $40 
$40  to     580 

fee  to  Jieo 

$180  k  over 

2 
4 
3 

64,787 
226,698 
309,024 

4,850 
15,794 
25,419 

7.49 
6.97 
8.21 

75.7 
68.6 
80.8 

i 
1 

Total 
(Average) 

136 

11,010,775 

1,057,084 

9.50 

94. S 

■ 

1  to  2 

Under  J40 
$40  to     $80 
$80  to   $180 

$180  &  over 

19 

65 

45 

6 

570,712 
3,571,041 
5,487,136 

1,391,385 

36, 307 
269,785 
591,407 
159,684 

6.35 
7.55 
10.78 
11.55 

62.6 

74.5 

106.1 

113.7 

Total 
(Average ) 

100 

15,987,018 

1,694,631 

10.60 

104.3 

i 

2  to  3 

Under   C40 
$40   to     580 
$80  to  $130 

$180  J;  over 

12 

26 
40 
22 

376,653 
1,561,875 
4,663,355 
9,385,135 

19,527 

120,377 

452,493 

1,102,234 

5.18 

7.71 

9.70 

11.74 

51. 0 

75.9 

95.5 

115.6 

Total 
(Average) 

23 

4,443,953 

509,713 

11.47 

112.9 

3  to  4 

Under  $40 
$40  to     $60 
$80  to  $180 

$180  &  over 

8 
5 

10 

510,510 

617,557 

3,315,886 

35,529 
75,426 
398,758 

6.96 
12.21 
12.03 

68. S 
120.2 

lie. 4 

Total 
(Average) 

14 

3,520,159 

304, 197 

8.64 

85.0 

4  tc  over 

Under  $40 
$40  to     $80 
$80  to  $180 

$180  i  over 

2 
5 

7 

150,276 

589, 400 

2,780,463 

7,320 

40,979 

255,898 

4.87 
6.95 
9.20 

47.9 
68.4 
90.6 



^^^^"  1 

Average  $10.16 


78 


shown  repeatedly  that  the  selling  ex- 
pense of  stores  increases  directly  with 
their  size.  When  the  additional  fac- 
tor of  turnover  is  considered,  however, 
it  is  precisely  the  stores  which  are 
large  that  have  relatively  high  turn- 
over rates  and,  accordingly,  it  is  these 
stores  which  have  low  selling  expense 
per  $100  of  total  net  sales  per  stock 
turnover.  From  this  point  of  view, 
the  large  stores  operate  at  an  advan- 
tage as  compared  to  the  small  stores. 

The  relations  of  size  of  store  and 
rate  of  stock  turnover  to  selling  ex- 
pense per  $100  of  total  net  sales  are 
developed  in  Table  37.  The  total 
section  of  this  table  shows  for  282 
stores  classified  by  size  the  amounts 
of  selling  expense  per  $100  of  total 
net  sales.  The  comparison  reaffirms 
the  conclusion  that  the  amounts  of 
selling  expense  increase  as  the  stores 
increase  in  size. 

When  stores  are  classified  by  size 
for  the  different  classified  rates  of 
turnover,  in  each  group  the  amounts 
of  selling  expense  per  $100  of  total 
net  sales  are  shown  to  increase,  with 
one  exception,  with  the  size  of  the 
store.  The  consistency  of  the  increase 
from  store-group  to  store-group  is  in- 
dicated by  the  graphic  parts  of  the 
table,  while  the  average  amount  for 
each  group  is  given  in  dollars  and 
cents. 

Another  way  of  expressing  the 
amounts  of  selling  expense  of  these 
stores,  according  to  size  and  rates  of 
stock  turnover,  is  in  terms  of  total 
expense.  This  is  done  in  Table  38. 
From  an  analysis  of  this  table  it  may 
be   concluded   that   the   amounts  of 


selling  expense  per  $100  of  total  ex- 
pense increase  for  all  the  stores,  and 
for  those  having  classified  rates  of 
stock  turnover,  as  the  amounts  of 
sales  increase.  How  consistent  this 
increase  is  for  each  group  of  stores 
classified  by  rates  of  stock  turnover 
is  shown  graphically  by  the  lengths 
of  the  bars  which  are  drawn  propor- 
tional to  the  amounts. 

The  significance  of  Tables  36  to  38, 
inclusive,  may  be  summarized  as  fol- 
lows: First,  the  amounts  of  selling 
expense  per  $100  of  total  net  sales 
increase  as  the  rates  of  stock  turnover 
increase.  This  condition  holds  for 
every  group  except  for  the  one  having 
four  or  more  turns  per  year.  Second, 
the  amounts  of  selling  expense  per 
$100  of  total  net  sales  per  stock  turn- 
over decrease  as  the  number  of  stock 
turns  increase.  Third,  the  amounts 
of  selling  expense  per  $100  of  total 
net  sales  increase  for  each  classified 
rate  of  stock  turnover  as  the  stores 
increase  in  size.  Fourth,  the  amounts 
of  selling  expense  per  $100  of  total 
expense  increase  as  stores  increase  in 
size  for  those  having  classified  rates 
of  stock  turnover. 

The  relation  of  selling  expense  to 
sales  and  to  stock  turnover  for  the 
same  282  stores  may  be  further  illus- 
trated by  classifying  the  stores  by 
size  and  by  the  amounts  of  inventory 
on  hand  at  the  close  of  the  year  1919. 
This  is  done  in  Table  39.  The 
amounts  of  selling  expense  for  stores 
of  different  size  and  with  different 
amounts  of  inventory  are  expressed 
first,  in  terms  of  total  net  sales,  and 
second,  in  terms  of  total  net  sales  per 


79 


TABLE  38 

TOTAL    EXPENSE,    SELLING    EXPENSE,    AND    AMOUNT    OF    SELLING   EXPENSE   PER   $100 

OF    TOTAL    EXPENSE,    FOR    STORES    CLASSIFIED    BY    RATES    OF 

STOCK  TURNOVER  AND   BY   SIZE,    1919 


Rates  of 
Stock 
Turnover 

Classified 

Total 
Het  Sales 
(In  OOO'b) 

Nujnber 

of 
Stores 

Total 
Brpanse 

Total 
Selling 
Expense 

Selling  Expense  per  $100  of  Total  Expense 

AjnouBt 

Per  Cent. 

<^»P'^»                              Actual 
>     20     40     60     80  100  120  140 

Total 
(Average) 

282 

$7,409,502 

$5,611,688 

$48.74 

35.10 
41»79 
51.66 
49.55 

49.79 

i 

100.0 

« 

TotEl 
(ATerane) 

raider  |40 
$40  to     $80 
$80  to  $180 

$180  &  over 

55 

106 

98 

45 

172,887 
1,073,679 
2,295,137 
5,867,599 

60,684 

448,806 

V 185, 724 

1,916,474 

72.0 
85.7 
106.0 
101.7 

Total 
(Average) 

9 

92,517 

46,063 

102.2 

raider  $40 
$40  to     $80 
$80  to  $180 

$180  fc  over 

2 

4 
5 

12,529 
39, 626 
40,362 

4,850 
15,794 
25,419 

38.71 
39.86 
62.98 

79.4 

81.8 

129.e 

Vaier  1 

i 

i 

1 

Total 
(Average) 

136 

2,200,164 

1,057,084 

48.05 

98.6 

raider  $40 
$40  to     $80 
$80  to  $180 

$180  Sc  over 

19 

66 

45 

6 

97,094 

648,685 

1,147,039 

307,346 

36,307 
269,786 
591,407 
159,584 

37.39 
41.59 
51.56 
51.92 

76.7 
85. 3 

los.e 

106.5 

1  to  2 

! 

Total 
(Average) 

100 

3,461,675 

1,  694, 631 

48.95 

30.87 
42.48 
50.34 
49.74 

100.4 

2  to  3 

raider  $40 
$40  to     $80 
$80  to  $180 

$180  &  over 

12 
26 
40 
22 

63,264 

283,383 

898,948 

2,216,078 

19,527 

120,377 

452,493 

1,102,234 

63.3 
87.2 
10S.5 
102.1 

; 

) 

Total 
(Average ) 

23 

957,575 

509,713 

53.23 

109.2 

1 

> 

5  to  4 

raider  $40 
$40  to     $80 
$80   to  $180 

$180  &  over 

8 
5 
10 

85,304 
121,706 
750,565 

36,529 
75,426 

398,758 

41.65 
61.97 
53.13 

85.5 
127.1 
109.0 

1 
1 

Total 
(Average) 

14 

697,573 

304, 197 

43.61 

69.5 

1 

4  &  over 

raider  $40 
$40   to     $80 
v80  to  $180 

$180  l^  over 

2 
5 
7 

16,681 
87,082 
593, 610 

7,320 

40,979 

255,698 

43.36 
47.06 
4o.n 

89.0 
96.6 
88.4 

^^^^^1 

I 

1 

Average  $48.74 


80 


stock  turnover.  Table  39  merits  care- 
ful study.  It  shows:  First,  that  the 
amounts  of  selling  expense  per  $100 
of  total  net  sales  increase  as  stores 
increase  in  size.  Second,  that  these 
amounts  for  stores  of  a  given  size, 
on  the  whole,  increase  as  the  size  of 
the  inventory  per  $100  of  total  net 
sales  increases.  Third,  that  the 
amounts  of  selling  expense  per  $100 
of  total  net  sales  per  stock  turnover 
for  stores  of  different  size  increase 
according  to  the  size  of  store,  for 
those  stores  with  sales  of  less  than 


$180,000,  while  for  those  with  sales 
in  excess  of  this  amount,  they  de- 
crease. Fourth,  for  each  group  of 
stores,  when  classified  by  size,  the 
selling  expenses  per  $100  of  total  net 
sales  per  stock  turnover  increase  as 
the  amounts  of  inventory  per  $100 
of  total  net  sales  increase. 

Certain  practical  conclusions  seem 
to  follow  from  the  foregoing  summary 
statement.  To  illustrate:  There  are 
106  stores  with  annual  sales  between 
$40,000  and  $80,000.  For  these  stores 
it  cost,  on  the  average,  $7.45  in  selling 


TABLE  39 

AMOUNT  OF  SELLING  EXPENSE  PER  $100  OF  TOTAL  NET  SALES  PER  STOCK  TURNOVER, 

FOR    STORES    CLASSIFIED    BY    SIZE    OF    STORE    AND    BY    AMOUNT    OP 

INVENTORY    PER    $100    OF    TOTAL    NET    SALES,    1919 


Amount  of 
luioiitcry 
per  tioo  of 

TDt«l 

lot  Salea 

IhJinbor 

of 
Stores 

Selling  Expense  per  $100  of 
Total  Net  Sales 

Selling  Expense  per  »100  of  Total  Vet 
Sales  per  Stock  Turnover 

<tn  OOO't) 

Ano'int 

Per  Cent. 

Insnt 

Par  Cent. 

Graphic 

Actual 

5     20      40      60     60  100  120 

CrapMa 

Actual 

5     20      40     «0     60   100   120   140   160   180  200 

Total 
(Average) 

282 

$10.16 

100.0 

$4.62 

! 

100.0 

Total 

Onder  |20 
$20  to  %*0 
Uo  k  OTor 

17 
155 
112 

9.03 
10.79 
6.84 

88.9 
106.2 
67.0 

2,05 
4.50 

6.51 

1 

(ATsragt ) 

^.4 
134.6 

Total 
(Avorace) 

SJ 

6.00 

1 

59.1 

4.00 

86.6 

1 

i 

Cnlar  UO 

Dndor  $20 
$S0  to   $40 
540  k  over 

10 
23 

5.72 
6. IS 

56. 3 
60. S 

2.72 
4.72 

S8.9 
102.2 

j 

Total 
(Average) 

106 

7. 45 

73.3 

4.14 

89.6 

%*o  to  Oso 

Under  $20 
$20  to  $40 
$40  i  over 

S 
4S 

58 

5.85 

7.13 
7.84 

57.6 
70.2 
77.2 

1.39 
3.24 

5.23 

30.1 
70.1 
113.2 

Total 
(Average) 

98 

10.16 

100.0 

5.55 

115.8 

^^^^ 

tSO  to  Jl60 

Unijer  $20 
$20  to  $40 
$40  i  over 

S 

63 
30 

8.82 
10.28 
10.10 

86.8 
101.2 
99,4 

2.10 
4.67 
6.75 

45.5 
101.1 
145.7 

1 

i 

Total 
(Average) 

45 

11.36 

1 

111.8 

4.05 

67.9 

■^^■" 

|180  i  ovor 

Under  $20 
$20  to  $40 
$40  k  over 

9 
35 

1 

9.27 
11.95 
10.32 

91.2 
117.4 
101.6 

2.05 
4.59 

44.5 
£9.4 

1 

8.60 



1 

Averase  $10,16 


81 


expense  to  sell  $100  worth  of  goods. 
However,  when  the  amount  of  selling 
expense  in  terms  of  sales  is  calculated 
per  stock  turnover,  this  amount  be- 
comes $4.14,  or  is  reduced  44  per 
cent.  For  the  three  stores  in  this 
group  the  inventories  of  which,  at  the 
close  of  1919,  were  less  than  $20  per 
$100  of  total  net  sales,  the  amount 
of  selling  expense  for  each  $100 
worth  of  goods  sold  is  $5.85.  For 
each  turnover,  however,  the  selling 


expense  is  $1.39.  The  amounts  of 
selling  expense  in  terms  of  sales  in- 
crease as  the  size  of  the  inventories 
per  $100  of  total  net  sales  increases. 
They  increase  much  more  rapidly, 
however,  with  the  size  of  the  inven- 
tories when  they  are  measured  in 
terms  of  a  unit  of  stock  turn.  The 
minimum  amount  in  terms  of  sales 
is  $5.85;  the  maximum  is  $7.84,  In 
terms  of  stock  turnover,  the  minimum 
is   $1.39,   and  the  maximum,   $5.23. 


TABLE  40 


COST   OF    MERCHANDISE   SOLD,    AVERAGE    INVENTORY,    AND    AVERAGE   ANNUAL    STOCK 

TURNOVER,   FOR   STORES    CLASSIFIED   BY    SIZE    AND   BY   AMOUNT   OF 

INVENTORY  PER  $100  OF  TOTAL  NET  SALES,  1919 


Classified 

Totel 
Met  Sales 

Amount  of 

Inventorv 

per  $100  of 

Total 
Met  Sales 

Nunber 

of 
Stores 

Cost   of 

Uerch&ndlse 

Sold 

Average 

Inventory, 
1918  &  1919 

Average  Annual  Stock  T'jmover 

Rats 

Per  Cent. 

(in  OOO's) 

Graphic 
)     20      40      60      80   100   120   140   160   180  200  220 

Actual 

Total 
(Avci-;;e) 

232 

$23,853,253 

$10,940,487 

2.2 

lOO.O 

Total 
(Average) 

Undor  S20 
J20   to   $40 
^0  &  over 

17 
155 
112 

2,732,262 
15,790,517 
5,280,579 

625,294 
6,633,672 
5,675,521 

4.4 
2.4 
1.4 

200.0 
109,1 
63.6 

i 

Total 
(Av'jrjge) 

5J 

71:;,  166 

472,946 

1.5 

68.2 

CraJer  $40 

Under  JBO 
JSO  to  540 
C40  &  over 

10 
23 

224,546 
438,620 

107,173 
565,775 

2.1 
1.3 

95.5 
59.1 

Total 
(Avora,39) 

106 

4,188,968 

2,333,029 

1.8 

81. 3 

i 

Under   J20 
J20   to   J40 
$40  3c  ovor 

3 
45 
53 

173,553 
1,851,829 
2,163,586 

40,898 

853,625 

1,488,508 

4.3 
2.2 
1.5 

190,9 
100.0 
68.2 

540  to  Sso 

Total 
(Average) 

98 

7,827,891 

4,056,088 

1.9 

36.4 

Under  CSO 
02O   to    »40 
$40  i  over 

5 
6J 
30 

367,666 
4,967,525 
2,493,700 

83,169 
2,259,616 
1,708,305 

4.2 

2.2 
1.5 

190.9 
100.0 
63.2 

}80  to   .ISO 

1 

Total 
(Avcra-y:) 

45 

11,1^:,, 233 

4,023,424 

2.8 

127.3 

Untfer  ''.^O 
$20   to   .J40 
"40  4   ovur 

9 

35 
1 

2,241,043 

8,746,717 

130,473 

496,227 

5,418,260 

U3.937 

4.5 
2.5 
l.T 

204.5 
118.2 
64.5 

$180  4  over 

1 
1 . , — —, ___ 

82 


Large  inventories  relative  to  sales  are 
clearly  a  disadvantage  when  con- 
sidered from  the  point  of  view  of 
selling  expense  in  relation  to  sales  and 
in  relation  to  sales  for  each  stock  turn- 
over. Strenuous  measures  should  be 
taken  by  merchants  to  reduce  their 


inventories  in  relation  to  their  sales. 
Tables  40  and  41  contain,  respec- 
tively, the  average  annual  stock  turns 
for  the  stores  shown  in  Table  39,  and 
the  number  of  stores  having  stock 
turns  above  and  below  the  averages 
for    the    respective    groups.      These 


TABLE  41 

NUMBER   OP    STORES    HAVING   SPECIFIED   RATES   OF   STOCTK    TURNOV^ER,    CLASSIFrEr>   BY 
SIZE  AND  BY  AMOUNT  OF  INVENTORY  PER  $100  OF  TOTAL  NET  SALES,  1919 


Classified 
Total 

Amount  of 

Inventory 

per  $100  of 

Total 

Net  Sales 

Average 

Annial 

Stock 

Turnover 

Number  of  Stores  Having  Specified  Rates  of  Stoclc  Turnover 

Net  Salea 
(In  000' 6 ) 

Total 

Under  1 

1  to  2 

2  to  3 

5  to  4 

4  8:  over 

Total 
(Average) 

2.2 

282 

9 

136 

100 

23 

14 

Total 
(Average ) 

Obder  $$0 
$20  to  $40 

$40  tc   over 

4.4 

2.4 

1.4 

17 
153 
112 

2 

7 

42 
94 

90 
10 

6 

IS 

1 

IX 
S 

Total 
(Average) 

1.5 

33 

2 

19 

12 

_ 

_ 

Dhder  §40 

tfader  $20 
$20  to  $40 
$40  &  over 

2.1 
1.3 

10 
23 

2 

2 
17 

8 
4 

- 

Total 
(Average ) 

1.8 

106 

4 

66 

26 

8 

2 

|40  to  $80 

Onder  $20 
$20  to  $40 
$40  &  over 

4.2 
2.2 
l.S 

3 
45 
58 

1 
5 

17 
49 

21 
5 

1 
6 

1 

2 

Total 
(Average ) 

1.9 

93 

3 

45 

40 

5 

5 

#80  to  $180 

Uoder  $20 
$20  to  $40 
$40  &  over 

4.2 
2.2 
1.5 

5 
63 
30 

X 
2 

13 
27 

39 

1 

2 
3 

3 
2 

Total 
(Average ) 

2.8 

45 

. 

6 

22 

10 

7 

$180  &   over 

Under  $20 
$20  to  $40 
$40  k   over 

4.5 
2.6 
1.2 

9 

35 

1 

^ 

5 

1 

22 

3 

7 

6 

83 


tables  are  of  interest  in  themselves, 
but  are  included  primarily  at  this 
place  to  supplement  Table  39  and  to 
show  how  nearly  the  respective  aver- 
ages, used  in  calculating  the  selling 
expense  per  $100  of  total  net  sales 
for  each  stock  turnover,  are  charac- 
teristic of  the  conditions  in  the  vari- 
ous stores  under  consideration. 

Table  42  is  identical  with  Table  39 
except  in  the  order  in  which  the  data 
are  classified.  In  this  table  the 
amounts  of  selling  expense  are  shown 


both  in  terms  of  sales  and  in  terms 
of  sales  per  stock  turn  for  stores  with 
different  amounts  of  inventory.  For 
all  the  stores  unclassified  by  inven- 
tories, selling  expenses  increase  as  the 
stores  increase  in  size.  This  condition 
holds,  moreover,  when  the  stores  are 
classified  by  the  amounts  of  inventory 
on  hand  at  the  close  of  1919.  The 
nature  of  the  changes  in  the  amounts 
from  group  to  group  is  shown  in  the 
graphic  part  of  the  table. 


TABLE  42 

AMOUNT  OP  SELLING  EXPENSE  PER  $100  OF  TOTAL  NET  SALES  PER  STOCK  TURNOVER, 

FOB  STORES  CLASSIFIED  BY  AMOUNT  OF  INVENTORY  PER  $100  OP 

TOTAL  NET  SALES  AND  BY  SIZE,  1919 


Classified 

Total 
Met  Salee 
(In  OOO'e) 

Hmber 

of 

stores 

Sftlling  Kxpenae  per  ^00  of 
TBtel  net  8*lea 

Selling  Bxpense 
per 

per  $100  of  Total  Wet  Sales 
stock  TumoTor 

Ir.vo  itory 

per  vlOO  of 

Total 

Net  SdoB 

Aneunt 

tar  Cent. 

Amenmt 
< 

Per  Cent. 

Crapble 
3     20      40      60     80   100   120 

Aotual 

)     20     40     60 

Orophlo 
eO  100   120   140  160  ISO  £00 

Actual 

Total 
f Average ) 

282 

510.16 

100.0 

$4.62 

hv 

100.0 

Under  $40 
(40  to     $80 

880  to  JISO 
SlBO  4  over 

106 
98 
45 

6.00 
7.45 
10.16 
11.36 

5S.1 
73.3 
100.0 
HI. 8 

4.00 
4.14 

s.ss 

4. OS 

86.5 

Totnl 
(Averago) 

mmaim 

Total 
(Averace ) 

17 

9. OS 

88.9 

2.05 

Under  #20 

Dnaor  J40 
^0  to     J80 
£80  to  $180 

SIBO  k  over 

S 

s 

9 

5.85 
8.82 
9.27 

57.6 
86.8 
91.2 

1.39 
2.10 

2.06 

30.1 

44.6 

Total 
(Average) 

15S 

10.79 

106.2 

4.50 

■■■'" 



tso  to  Uo 

Under  S40 
^40   to     {80 
SSO  to  $180 

tieo  &  over 

10 
45 
63 
S5 

5.72 
7.13 
10.23 
11.03 

56.3 
70.2 
101.2 
117.4 

2.72 
3.24 
4.67 
4.59 

S8.9 
70.1 

1 

99.4 

1 

1 

Total 
(Average) 

112 

e.84 

87.0 

6.31 

^M^^ 

I.—.                  1 

Under  $40 
$40  to     $80 
$80  to  $180 

$1S0  t  over 

2i 
58 
»0 

1 

6.13 
7.64 
10.10 
10.33 

60.3 
77.2 
99.4 
101.6 

4.72 

5.23 
6.73 

e.eo 

I 

»40  k  onr 

186.1 

'• 

Avorago  t^O.lG 


Avoro^o  $4*62 


D- — Summary. 

(1).  The  amounts  of  selling  ex- 
pense per  $100  of  total  net 
sales  and  also  per  $100  of 
total  net  sales  per  amount 
sold  per  $1  of  inventory  de- 
creased   between    1914    and 

1918,  and  between  1918  and 

1919.  This  is  true  for  all 
stores  and  also  for  the  stores 
classified  by  size  and  by 
amount  of  inventory  per  $100 
of  total  net  sales. 

(2).  Inventories  in  terms  of  sales 
decreased  between  1914  and 
1918,  and  1918  and  1919. 

(3) .  As  the  inventories  in  terms  of 
sales  increase,  the  amounts  of 
selling  expense  per  $100  of 
total  net  sales  on  the  whole 
decrease.  For  stores  of  a 
given  size,  they  increase.  In 
terms  of  the  amount  sold  per 
$1  of  inventory  and  per  stock 
turnover  the  amounjts  in- 
crease for  all  stores  and  also 
for  stores  of  a  given  size. 

(4).  As  the  size  of  the  stores  in- 
creases, the  selling  expenses 
per  $100  of  total  net  sales  per 
amount  sold  per  $1  of  inven- 
tory generally  increase  for 
stores  with  sales  under  $180,- 
000  and  then  decrease  for  the 
stores  with  sales  of  $180,000 
and  over. 

(5).  The  proportions  of  total  ex- 
pense attributable  to  selling 
increase  as  the  size  of  the 
stores  increases,  and  decrease 


as  the  inventories  in  terms  of 
sales  increase. 

(6).  For  stores  with  a  given  rate 
of  stock  turnover,  the  amounts 
of  selling  expense,  in  terms  of 
sales  alone  or  of  sales  and 
stock  turnover,  increase  as  the 
stores  increase  in  size. 

(7).  For  stores  with  a  given  rate 
of  stock  turnover,  the  amounts 
of  selling  expense  in  terms  of 
total  expense,  alone  or  com- 
bined with  the  rate  of  stock 
turnover,  increase  as  stores 
increase  in  size. 

(8).  The  amounts  of  selling  ex- 
pense per  $100  of  total  net 
sales  increase,  and  the 
amounts  per  $100  of  total  net 
sales  per  stock  turnover  de- 
crease as  the  rates  of  stock 
turnover  increase. 

3. YEARLY       AMOUNTS       OF       SELLING 

EXPENSE  IN  RELATION  TO  THE 
AMOUNTS  OF  GOODS  SOLD  PER  FULL- 
TIME SALES-PERSON  AND  TO  THE 
METHODS  BY  WHICH  SALESMEN 
ARE  PAID,  FOR  STORES  CLASSIFIED 
BY  YEARS,  BY  SIZE,  AND  BY  LOCA- 
TION. 

Sales  of  goods  in  clothing  stores  are 
determined  in  part  by  the  personnel 
of  the  sales  force,  and  the  selling  ex- 
pense in  its  relation  to  sales  is  con- 
trolled largely  by  the  number  of 
salesmen  employed  and  the  amount 
of  sales  which  they  make  in  a  given 
length  of  time.  In  order  to  get  some 
measure  of  the  variations  in  selling 
expense    for    stores   under    different 


85 


conditions  of  operation  and  different 
methods  of  paying  salesmen,  it  has 
been  thought  of  interest  to  study  a 
group  of  stores  in  detail.  In  the 
present  section  the  analysis  of  selling 
expense  is  directed  toward  this  end. 
Two  units  have  been  used  to 
measure  amounts  of  selling  expense. 
First,  they  are  expressed  in  terms  of 
sales,  and  second,  in  terms  of  total 
expense.  Both  of  these  units,  how- 
ever, are  now  refined  so  as  to  secure 
the  amounts  in  terms  of  $1,000  of 
sales  per  full-time  sales-person  and  in 
terms  of  the  rapidity  with  which  stock 
is  turned  during  a  year.* 

(1) — YEARLY  AMOUNTS  OP  SELLING 
EXPENSE  IN  RELATION  TO 
AMOUNTS  OF  GOODS  SOLD  PER 
FULL-TIME     S^VLES-PERSON. 

A. — Yearly  Amounts  of  Selling 
Expense  per  $100  of  Total  Net 
Sales  and  per  $100  of  Total 
Expense,  1919,  1918,  and  1914. 

The  records  of  146  identical  stores 
for  the  years  1919,  1918,  and  1914 
are  available  for  a  study  of  the 
amounts  of  selling  expense  in  stores 
in  relation  to  the  amount  sold  per 
full-time  sales-person.  Subsequent 
analysis — pages  89  to  111 — shows  the 
amounts  of  selling  expense  expressed 
in  terms  of  both  sales  and  total  ex- 
pense for  stores  classified  by  size  and 
by  the  amounts  sold  per  full-time 
sales-person.  The  present  discussion 
is  concerned  with  the  relation  between 

*  The  methods  by  which  these  units  are 
computed  are  explained  on  page  4,  items 
19,  20,  22,  and  23. 


selling  expense  and  sales  measured  in 
both  units  for  the  146  stores  for  the 
three  years. 

Table  43  shows  for  the  438  store- 
years,  1914,  1918,  and  1919,  combined, 
that  it  cost  $10.76  to  sell  $100  worth 
of  goods.  In  1919  the  corresponding 
amount  was  $10.39 ;  in  1918  it  was 
$10.94;  and  in  1914,  $11.35.  That  is, 
the  amounts  decreased  between  1914 
and  1918,  and  1918  and  1919,  the  per- 
centage of  difference  between  1914 
and  1918  being  3.6,  and  between  1918 
and  1919,  5.0.  When  the  amounts 
of  selling  expense  per  $100  of  total 
net  sales  are  shown  for  each  $1,000 
sold  per  full-time  sales-person  they 
are  reduced,  but  follow  the  same 
general  direction  from  year  to  year. 
In  1919,  the  average  amount  was 
$0.51,  in  1918  it  was  $0.70,  and  in 
1914,  $1.00.  That  is,  the  amounts 
decreased  between  1914  and  1918,  and 
1918  and  1919,  the  percentage  of 
change  from  1914  to  1918  being  30.0, 
and  between  1918  and  1919,  27.1. 

The  occasion  for  the  decrease  from 
year  to  year  is  shown  in  Table  44, 
wherein  the  amounts  sold  per  full- 
time  sales-person  are  given.  For  the 
combined  years  the  average  amount 
so  sold  was  $16,149.  In  1919  it  was 
$20,437,  in  1918  it  was  $15,613,  and 
in  1914,  $11,345.  That  is,  between 
1914  and  1918  the  amounts  increased 
by  37.6,  and  between  1918  and  1919 
by  30.9  per  cent.  The  stores  have 
much  lower  average  amounts  of  sell- 
ing expense  in  1919  than  in  the  other 
years,  when  they  are  expressed  in  the 
activities  of  their  full-time  sales- 
people, than  when  they  are  expressed 


86 


solely  in  the  amount   of  their  total 
sales. 

In  Table  3  attention  was  called  to 
the  fact  that  for  the  154  stores  con- 
sidered, the  amounts  of  selling  ex- 
pense per  $100  of  total  expense  in- 
creased between  1914  and  1918,  and 
between  1918  and  1919,  the  percent- 
age of  change  being  1.6  per  cent, 
between  1914  and  1918,  and  4.5  per 


cent,  between  1914  and  1919.  For  the 
146  stores  now  under  consideration, 
as  shown  in  Table  45,  the  actual 
amounts  closely  correspond  to  those 
for  154  stores,  the  direction  of  change, 
from  year  to  year,  however,  being 
somewhat  different.  In  1914,  $50.18 
out  of  every  $100  of  total  expense  was 
due  to  selling.  In  1918  the  amount 
was    $49.39,    and    in    1919,    $50.90. 


TABLE  43 

AMOUNT  OF  SELLING  EXPENSE  PER  $100  OF  TOTAL  NET  SALES  PER  $1,000  OF  SALES 
PEE   FULL-TIME    SALES-PERSON,    FOR    146    IDENTICAL    STORES    CLASSI- 
FIED BY   AMOUNT   OF   SALES   PER   FULL-TIME   S.VLES- 
PERSON,     1919,     1918,     AND    1914 


Aneunt  of 
Sales  p«r 
Pull-ttme 
Salee-perBoz 
(tn  OCo'al 


0  80  40   60  60  ICO  120 


Selling  Expense  per  Sioo  of  Total  Ilet  Sales  per  $1,000 
of  Sales  per  Pull-tliw  £Qlee-por30n 


0  20  40  60  80  100  120  140  160  180  200 


Under  tlS 

ti2  to  tie 

tie  to  $24 
tZi  to  $32 
$52  &  over 


151 
107 

iia 


Total 
(Average) 


Under  $12 
$12  to  $16 
tl6  to  t24 
£24  to  *32 
$52  &  over 


Unfler  Jl2 
Sl2  to  3l6 
Sl6  to  324 
#24  to  4S2 
f 32  &  over 


Cndor  $12 
Sl2  to  $16 
tie  to  #24 
•24  to  $32 

#32  &  over 


$10.76 


11.19 
10.97 
11.22 
10.05 
8.54 


10.59 


9.21 
10.15 
11.34 
9.99 
8.62 


10.94 


10.24 
11.26 
11.57 
10.11 
S.59 


11.55 


12.02 
11.19 

9.81 
U.S9 

2.85 


100.0 


104.0 
102.0 
104.5 
95.4 
77.5 


85.6 
94.1 
105.4 
92.8 
80.1 


101.7 


05.2 
104.6 
105.7 
94.0 
51.9 


105.5 


111.7 

104.0 
91.2 

105. S 
26.5 


$0.67 


1.19 
0.80 
0.59 
0.57 
0.22 


0.51 


0.95 
0.72 

0.60 
0.56 
0.23 


0.70 


1.01 
0.84 
0.57 
0.57 
0.15 


l.CO 


1.34 
0.80 
0.55 
0.41 

o.oa 


AToraBS  $30  •76 


AToraga  $0.67 


100.0 

177.6 
119.4 
88.1 
SS.2 

32. a 

76J. 


I4i.a 

107.5 
89.6 
53.7 
54.3 


104.5 


150.7 
125.4 
85.1 
55.2 
22.4 


149.3 


200.0 
119.4 
79.1 
61.2 
11.9 


87 


That  is,  between  1914  and  1918  the 
amounts  slightly  decreased  and  be- 
tween 1918  and  1919  slightly  in- 
creased. The  differences  in  actual 
amounts  and  the  direction  of  the 
changes  from  year  to  year  are,  of 
course,  due  to  the  fact  that  stores 
differing  in  number  and  identity  are 
considered. 

When  the  amounts  of  selling  ex- 


pense per  $100  of  total  expense  are 
shown  for  every  $1,000  sold  per  full- 
time  sales-person,  as  in  Table  45,  the 
$50.18  for  1914  becomes  $4.42,  the 
$49.39  for  1918  becomes  $3.16,  and 
the  $50.90  for  1919  becomes  $2.49. 
That  is,  between  1914  and  1918,  and 
between  1918  and  1919  the  amounts 
decreased,  the  percentages  of  change 
being,    respectively,    28.5    and    21.2, 


TABLE  44 

TOTAL  NET  SALES,  NUMBER  OF  FULL-TIME  SALES-PEOPLE,  AND  AMOUNT  OF  SALES  PER 

FULL-TIME   SALES-PERSON,    FOR    146   IDENTICAL    STORES    CLASSIFIED   BY 

AMOUNT  OF   SELLING  EXPENSE  PER  $100   OF  TOTAL  NET 

SALES,     1919,     1918,     AND     1914 


AiBOxmt  of 

Selling 

Expense 

per  ?100  of 

Total 

Ret  Sales 

number 

of 
Store- 
7«&ra 

Total 
Het  Sales 

Number  of 

Full-time 

Sale 8 -people 

Het  Sales  per  Pull-tlmo  Sales-person 

Years 

Amouat 

< 

Per  Cent. 

Graphic 

^                                  Aotual 
)  20  40  60  80  100  120  140 

Total 
(Average ) 

4S8 

$42,655,162 

2,641.4 

$16,149 

100.0 

• 

Dnder  $6 
♦6  to  $12 
$12  &  over 

95 
241 

102 

4,475,628 
25,752,733 
12,428,801 

278.3 

1,509.3 

853.3 

16,075 
17,057 
14,  566 

99.S 

105.6 

90.2 

(Average ) 

i 

1 

Total 
(Average) 

146 

19,931,753 

975.3 

20,437 

126.6 

1919 

Dnder  $6 

♦6  to  $12 
$12  Je  over 

39 
78 
29 

2,447,315 

12,206,633 

5,277,805 

127. C 
560.6 
287.1 

19,180 
21,774 
18,383 

118.8 
134.8 
113.8 

i 

Total 
(Average ) 

146 

13.981,287 

895.5 

15,613 

96.7 

! 

1 

19ia 

Under  $6 

$6  to  $12 
$12  &  over 

31 
83 
32 

1,266,945 
8,994,157 
3,720,185 

86.6 
547.5 
261.4 

14,630 
16,428 
14,232 

90.6 

101.7 

88.1 

( 
1 

Total 
(Average) 

146 

8,742,122 

770.6 

11,345 

70.3 

; 

Vnder   56 

$6  to  $12 
$12  &  over 

25 
80 
41 

759,368 
4,551,943 
3,430,811 

64.1 
401.7- 
304.8 

11,847 
11,332 
11,256 

73.4 
70.2 
69.7 

: 

1 

Average  $16,149 


These  decreases  from  year  to  year, 
like  those  shown  immediately  above, 
where  the  unit  of  interpretation  is 
sales,  are  to  be  attributed  largely  to 
the  increased  sales  per  full-time  sales- 
person. 

Without  repeating  the  conclusions 
reached  on  page  52,  concerning  the 
amounts  of  selling  expense,  first  in 
terms  of  sales,  and  second  in  terms  of 
total  expense  for  the  different  years 
and  the  change  from  year  to  year,  all 
of  which  are  confirmed  by  the  figures 
shown  in  Tables  43  and  45,  it  may  be 
concluded  from  these  tables  that  sell- 
ing expense  per  $100  of  total  net  sales 
and  per  $100  of  total  expense  for  each. 
$1,000  of  goods  sold  per  full-time 
sales-person  was  less  in  1918  than  in 
1914  and  less  in  1919  than  in  either 
of  the  other  years.  That  is,  in  spite 
of  the  increased  selling  and  total 
operating  expenses  from  year  to  year, 
increased  sales  per  salesman  sufficed 
to  reduce  the  amount  of  selling  ex- 
pense both  in  terms  of  sales  and  in 
terms  of  total  expense. 

B. — Yearly  Amounts  of  Selling 
Expeme  per  $100  of  Total  Net 
Sales  and  per  $100  of  Total 
Expense,  for  Stores  Class^ified 
hy  Size,  1919,  1918,  and  1914. 

Two  measures  of  the  amounts  of 
selling  expense  per  $100  of  total  net 
sales  and  per  $100  of  total  expense 
are  available  for  stores  classified  by 
size  and  by  amounts  sold  per  full-time 
sales-person.  The  first  is  in  terms  of 
stock  turnover,  and  the  second,  in 
terms  of  $1,000  sold  per  full-time 
sales-person.     The  present  discussion 


has  to  do  with  the  amounts  in  terms 
of  sales  per  stock  turnover  for  stores 
for  1919. 

The  analysis  above,  page  42,  and 
in  various  other  places  throughout 
the  discussion,  has  shown  that  the 
amounts  of  selling  expense  per  $100 
of  total  net  sales  increase  as  stores 
increase  in  size.  Moreover,  the  dis- 
cussion in  Volume  I  *  of  the  Bureau 's 
study  of  Costs,  Merchandising  Prac- 
tices, Advertising  and  Sales  in  the 
Retail  Distribution  of  Clothing,  shows 
that  the  amounts  of  sales  per  full- 
time  sales-person  are  larger  in  the 
large  than  in  the  small  stores.  Ac- 
cordingly, when  stores  are  classified 
by  size  and  by  the  amount  of  sales  per 
full-time  sales-person,  as  in  Table  46, 
it  might  be  expected  that  the  stores 
within  each  sales-group  which  had 
large  amounts  of  sales  per  full-time 
sales-person  would  have  large  selling 
expense  per  $100  of  total  net  sales. 
This  result,  however,  is  not  brought 
out  in  the  table.  The  reason  for  this 
may  be  explained  as  follows :  Not  all 
large  stores  had  large  amounts,  nor 
all  small  stores  small  amounts  sold 
per  full-time  sales-person.  Moreover, 
not  all  stores  having  small  amounts 
of  sales  per  full-time  sales-person  had 
relatively  large  selling  expense,  nor 
did  all  stores  which  had  relatively 
large  sales  per  full-time  sales-person 
have  relatively  small  amounts  of  sell- 
ing expense  per  $100  of  sales.  The 
size  of  the  store  alone  would  tend  to 
cause  selling  expense  to  increase, 
while  higher  sales  per  sales-person 
would   tend   to   reduce   the   amounts 

*  Page  92. 


89 


TABLE  45 

AMOUNT   OF   SELLING   EXPENSE  PER   $100    OF   TOTAL  EXPENSE   PER   $1,000   OF   SALES 

PER  FULL-TIME  SALES-PERSON,  FOR   146   IDENTICAL   STORES   CLASSIFIED 

BY   AMOUNT   OF   SALES  PER  FULL-TIME   SALES-PERSON, 

1919,    1918,    AND    1914 


Apourt    of 
SbIos    per 
Pill-tlmo 
&elos-p«roos 
(In  OOO's) 

[*umbor 

of 
Store- 
years 

Selling  ExT-friee   per  $100  of   Total   expense 

.elllne  Expense   per  :ilOO  o*"   total   Lxpjnso   per 
;i.000  of   Seles   per  FVll-:lne  Sales-persen 

Ve»r« 

Anount 

Pi-.r  Cent. 

•iKxint 

F-r  Cent. 

Orophlc                  1 

1      20       4f      60      OP    100    120 

OTiphU                                         1 
fo      40       .0      ^i      100    120    140    160    180    200 

TctDl 
(AvoraB*) 

416 

$60.23 

ICO.O 

M.ll 

100.0 

Under  $12 
512    tc   $16 
416    to  $£4 
$24   to  $J2 

t52  1-  over 

ISl 
107 
118 

39 
21 

51.06 
50.fl8 
51.81 
47.45 
43.11 

101.7 
101.1 
103.1 
«14.5 

65.8 

5.*4 
3.71 
2.70 

174.9 
U9.S 
66.8 

Tetol 
Uv&r&£0 ) 

~ 

Tottl 
(AvoI-aTe) 

146 

5C.90 

101. -^ 

2.49 

80.1 

Under  $12 
$12  to  $16 
$16  tc  $24 
$24   to  $12 
$5?  t  ever 

15 
10 
61 
21 
19 

45. -59 
56.29 
51.40 
49.06 
41.62 

90.4 
112.1 
106.3 

97.7 
86.6 

4.'f 

4.02 
2.fl4 
1.76 
1.16 

149.0 

^^ 

Total 
(Avcrife) 

146 

49.19 

9t.l 

: .  u 

ICI.6 

Itaoer  $12 
$12   to   $16 
$16  to  $24 
$24  to  $32 
Cl2  «.  over 

60 
42 
57 
14 

5 

49.16 
49.97 
60.77 
41.12 
16.24 

W.3 
99.5 
101. 1 

es.B 

76.1 

3.73 

1.58 
1.02 

t5e.5 

1 

52.8 

Tc  tal 
(Avertpe ) 

146 

50.16 

99.9 

..>: 

Cnaer  $12 
812  to  $16 
516  to  $24 
$24  to  $12 

£;:  i.  ovtr 

66 
15 
20 
4 
I 

5?.  7  4 

48.77 
46.04 
4^.95 
20.11 

105.0 
97.1 
91.7 
65.5 
40.1 

5.36 
1.47 
2.-17 
i.JC 

1 

17.0 

Avcrt.RO  $60,25 


when  they  are  expressed  in  sales. 
These  different  tendencies  do  not 
wholly  balance  each  other. 

In  so  far  as  it  is  possible  to  gener- 
alize with  respect  to  the  amounts  of 
selling  expense  for  stores  with  dif- 
ferent amounts  sold  per  full-time 
sales-person,  it  may  be  said  that  in 
terms  of  sales  they  vary  inversely 
with  the  amounts  sold  per  full-time 
sales-person.     That  is,  the  reduction 


in  selling  expense,  accompanying  in- 
creased sales  on  the  part  of  salesmen 
in  the  larger  stores,  tends  more  than 
to  balance  the  higher  selling  ex- 
pense associated  with  these  stores. 

When  the  amounts  of  selling  ex- 
pense are  expressed  in  terms  of  net 
sales  per  stock  turnover,  however,  as 
in  the  column  of  Table  46  bearing  this 
caption,  the  direction  of  change  in  the 
amounts  for  stores  having  different 


90 


TABLE  46 

AMOUNT  OF  SELLING  EXPENSE  PER  $100  OF  TOTAL  NET  SALES  PER  STOCK  TURNOVER 
FOR   STORES    CLASSIFIED    BY    SIZE   AND   BY    AMOUNT   OF   SALES  ' 

PER    FULL-TIME    SALES-PERSON,    1919 


Claselfled 

Amount   of 
Sales  per 
Pull-tlme 
Saloo-person 
(in  OOC'e) 

NuiEber 

of 
Stores 

Selling  Expeme  per  $100  of 
Total  Nat   Salee 

Selling  Eipense  per  $100  of  Total  Net  Salea 
per  Stock  Turnover 

Total 
Met  SttlM 

Amount 

For  Cent. 

Per  Cent. 

'^-•''^'^'                       1  Actual 
0      20      40      60      80   100   120   140 

Amount 

*°P"^                           1  Actual 
3      20     40      60     80   100   1£0   140 

Total 
(AveroRe ) 

269 

$10.19 

100.0 

$4.63 

100.  c 

PiuJer  tl2 

«12  to  lie 
tie  to  tS4 

t24  to   tJ2 
$32  &   over 

50 

56 
103 
44 
36 

9.73 
9.71 
10.89 
9.59 
9.88 

B5.5 
86.3 
106.9 
94.1 

»7.0 

6.72 
4.62 
5.45 

4.00 
5.53 

Total 
(Average ) 

i 

^^^^ 

; 

76.2 

Total 
(Averaeo) 

31 

5.88 

i 

67.7               5.92 

84.7 

Under   312 
Jl2  to   $16 
tie   to  $24 
t24   to   $32 
$32  4  over 

9 
4 

7 
7 

4 

7.26 
5.59 
6.43 
4.23 
5.31 

71.2 
64.9 

63.1 
41.5 
62.1 

5.19 
5.11 
4.95 
£.49 

5.52 

112.1 
67.2 
106.9 

S3.e 

71.7 

Under  $40 

^■l^^B 

Tttel 
(Averafe) 

103 

7.50 

V3.6 

4.17 

90.1 

Under  $12 
tl2   to   $16 
tl6   to   $24 
•24   to   $32 
t52  &  over 

16 
54 

31 
9 
15 

9.04 
8.62 
6.58 
7.18 
5.06 

ee.7 

64.6 
64.6 
70.5 
49.7 

6.03 
5.07 
3.66 
3.42 

2.66 

|4C  to  t80 

79.0 
73.9 
57.5 

Tiital 
(Average) 

92 

/ 
10.04 

98.5 

; 

Dnder  $12 
$12   to   $16 
$16   to   $24 
$24   to   $32 
$52  &  over 

4 

IS 

50 
14 
9 

10.86 
11.29 

9.46 

loe.6 

110.8 
93.0 
67.9 

123.2 

tSO  to  tlBO 

115.8 

i 

; 

Total 
(Average) 

45 

113.2 

4.27 

Under  $12 
$12  to  $16 
tl6  to   $24 
$24  to   $32 
$32  k  over 

1 

5 

IS 

14 

114.6 
96.5 
136.5 
100.9 
99.4 

100.9 

1180  &  over 

3.39 

; 

85.5 
68.5 

10.13 

3.17 

B_          ! 

Average  $10.19 


Average  $4.6S 


91 


sales  per  full-time  sales-person  is  not 
so  uncertain.  Both  turnover  rates 
and  selling  expense  in  terms  of  sales 
are  relatively  higli  in  the  large  stores. 
When  the  amounts  of  selling  expense 
are  expressed  per  $100  of  sales  per 
turnover,  they  decrease  as  the  amounts 
sold  per  full-time  sales-person  in- 
crease. That  is,  the  more  rapid  turns 
associated  with  large  sales  per  sales- 
person convert  the  questionable  direc- 
tion of  change  from  store-group  to 
store-group  into  one  which  is  abso- 
lutely certain. 

The  regularity  of  the  change  in  the 
amounts  of  selling  expense  per  $100 
of  total  net  sales  and  per  $100  of 
sales  per  turnover  for  the  stores,  when 
classified  by  size  and  by  the  amounts 
sold  per  full-time  sales-person,  is 
shown  graphically  in  Table  46.  The 
detailed  analysis  of  the  figures  points 
the  following  conclusions:  First,  the 
amounts  of  selling  expense  per  $100 
of  total  net  sales  increase  as  the  stores 
increase  in  size.  Second,  amounts  of 
selling  expense  per  $100  of  total  net 
sales  for  stores  of  a  given  size  roughly 
decrease  as  the  amounts  sold  per  full- 
time  sales-person  increase.  Third, 
the  amounts  of  selling  expense  per 
$100  of  total  net  sales  per  stock  turn- 
over increase  as  stores  increase  in  size 
for  stores  with  sales  under  $180,000. 
This  condition  is  also  true  for  stores 
of  different  size,  but  with  the  same 
amounts  of  sales  per  full-time  sales- 
person. Fourth,  the  amounts  of  sell- 
ing expense  per  $100  of  total  net  sales 
per  stock  turnover  decrease  as  the 
amounts  of  sales  per  full-time  sales- 
person increase.    This  condition  holds 


not  only  for  stores  as  a  whole,  but 
also  when  they  are  classified  by  size. 

The  practical  significance  of  these 
conclusions  to  merchants  is  that  the 
amounts  of  selling  expense  in  terms 
of  sales  and  in  terms  of  sales  per  stock 
turnover  may  be  decreased  by  increas- 
ing the  amounts  sold  per  full-time 
sales-pereon.  The  latter  condition 
may  result  from  stimulating  the  sales 
of  a  given  force  or  from  securing  the 
same  sales  with  a  diminished  force. 

The  foregoing  discussion  refers  to 
the  amounts  of  selling  expense  for 
269  stores  with  different  amounts  of 
sales  per  full-time  sales-person,  for  the 
year  1919,  the  measures  of  selling 
expense  being  given  first  in  terms  of 
sales,  and  second  in  terms  of  the  num- 
ber of  stock  turns  per  year. 

Another  method  of  analyzing  the 
selling  expenses  for  these  stores  for 
1919  is  to  express  them  in  terms  of 
sales  per  $1,000  of  goods  sold  for  each 
full-time  sales-person.  This  is  done 
in  Table  47.  In  this  year  for  the  269 
stores  it  cost  on  the  average  $0.50  to 
sell  $100  worth  of  goods  for  each 
$1,000  sold  per  full-time  sales-person. 
For  the  stores  with  sales  under 
$40,000,  the  corresponding  amount 
was  $0.35;  for  those  with  sales  of 
$40,000  to  $80,000  it  was  $0.45;  for 
those  with  sales  of  $80,000  to  $180,000 
it  was  $0.52 ;  and  for  those  with  sales 
of  $180,000  and  over  it  was  $0.50. 
That  is,  the  amounts  tend  generally 
to  increase  as  the  stores  increase  in 
size.  It  will  be  recalled  that  amounts 
of  selling  expense  in  terms  of  sales 
increase  as  stores  increase  in  size. 
The  amounts  sold  per  full-time  sales- 


92 


TABLE  47 

AMOUNT  OF  SELLING  EXPENSE  PER  $100  OP   TOTAL  NET  SALES  PER  $1,000  OF  SALES 

PER  FULL-TIME  SALES-PERSON,  FOR  STORES  CLASSIFIED  BY  SIZE  OF  STORE 

AND  BY  AMOUNT  OF  S.VLES  PER  FULL-TIME  SALES-PERSON,  1919 


ci>sBiri(><i 

Total 
««t  S«lgs 
(IB  000'<) 


Jteouct  of 
Sale*  p«r 
Pull-ti™ 
Saloa-perso: 
fin  nnn'al 


OrapMo 
0     20      40      60     80   100   120   140 


Oraphlo  I 

20      40      60     80   100   120   140   160   180   200 


|40   to   iSO 


tSO   to   (ISO 


4l30  & 


Ondsr  tl2 
tl2  to  tl6 
tie  to  $24 

let  to  $32 

$32  Ji  over 


Undsr  312 
tl2  to  }1S 
616  to  $24 
f24  to  $32 
$32  It  over 


Under  $12 
il2  to  $16 
$16  to  )24 
324  to  $32 
$37  It  over 


Under  $12 
$12  to  $16 
$16  to  $24 
t2i  to  $32 
$22  &  over 


$10.19 


9. 73 
9.71 
10,89 
9.59 
9.88 


5.88 


7.26 
5.59 
6.43 
4.23 
S.31 


7.50 


9.04 
8.62 
6.58 
7.18 
5.06 


10.04 


10.86 
11.29 
9.48 
8.96 


11.54 


11.68 
9.83 
13.91 
10.28 
10.13 


100.0 


95.5 
95.3 
106.9 
94.1 

«7.0 


57. 7 


71.2 
S4.9 

£3.1 
41.5 
52. 1 


73.6 


e8.7 
84.6 
64.6 
70.5 
49.7 


98. S 


106.6 
110.8 
93.0 
87.9 
123.2 


113.2 

114.6 
96.5 
136.5 
100.9 
99.4 


$0.50 


0.95 
0.69 

0.57 
0.35 
0.24 


0.35 


0.73 
0.38 
0.32 
0.15 
0.15 


0.45 


0.90 
0.60 
0.35 
0.27 
0.12 


0.52 


1.05 
0.63 
0.50 
0.31 
0.33 


0.50 

1.12 
0.66 
0.7J 
0.57 
0.24 


100.0 

190.0 
138.0 
114.0 
70.0 
4S.0 

70.0 

146.0 
76.0 
64.0 
SO.O 
30.0 


SO.O 


180.0 
120.0 
70.0 
S4.0 
24.0 


104.0 

210.0* 
166.0 
100,0 
66.0 
66.0 


100.0 


224. 0* 
136.0 
146.0 
74.0 
48.0 


ATCraga  $10.10 


AverflLge  $0.50 


Pull  loogt^  not  ehovn 


person  likewise  tend  to  increase  as 
stores  increase  in  size.  However, 
when  the  amounts  of  selling  expense 
are  expressed  in  terms  of  sales  for 
each  $1,000  of  goods  sold  per  full-time 
sales-person,   inasmuch    as   they   in- 


crease, it  follows  that  the  amounts  of 
selling  expense  for  stores  of  different 
size  increase  more  rapidly  in  terms  of 
sales  than  do  the  amounts  sold  per 
full-time  sales-person.  For  the  year 
1919,  the  actual  amounts  sold  by  each 


93 


person  are  given  in  tabular  and 
graphic  form  in  Table  48. 

"We  are,  however,  not  concerned  at 
this  place  with  store-size  alone. 
Equally  interesting  details  of  Table 
47  are  the  amounts  of  selling  expense 
in  terms  of  sales  alone  and  per  $1,000 
sold  per  full-time  sales-person  for 
stores  of  essentially  the  same  size,  but 
with  different  amounts  sold  per  full- 
time  sales-person.  The  stores  are 
divided  as  usual  into  four  groups. 
Within  each  one  the  amounts  of  sell- 
ing expense  rapidly  decrease  per  $100 
of  sales  per  $1,000  sold  per  full-time, 
sales-person  as  the  amounts  sold  per 
salesman  increase.  For  all  the  stores, 
the  average  amount  of  selling  expense 
expressed  in  this  way,  for  stores  in 
which  each  full-time  sales-person  sold 
less  than  $12,000  per  year,  was  $0.95. 
From  this  as  a  maximum,  the  amounts 
of  selling  expense  decrease  to  $0.24 
for  the  stores  having  sales  per  full- 
time  sales-person  of  $32,000  and  over. 
It  is  unnecessary  to  point  out  in  detail 
the  rapidity  of  the  decline  in  the 
amounts  for  the  stores  when  classified 
by  size.  The  part  of  the  table  bearing 
the  caption,  "Selling  Expense  per 
$100  of  Total  Net  Sales  per  $1,000  of 
Sales  per  Full-time  Sales-person," 
shows  this  in  a  graphic  manner. 

The  average  amounts  sold  per  full- 
time  sales-person  for  the  269  stores 
classified  by  size  and  by  the  amounts 
of  selling  expense  per  $100  of  total 
net  sales  are  shown  in  Table  48.  For 
each  of  the  different  groups  of  stores 
classified  by  size,  the  amounts  sold 
per  full-time  sales-person  decrease  as 
the  amounts  of  selling  expense  per 


$100  of  total  net  sales  increase.  That 
is,  the  relationship  between  selling 
expense  in  terms  of  sales  and  amount 
sold  per  full-time  sales-person  is  in- 
verse. 

The  amounts  sold  per  full-time 
sales-person,  as  shown  in  Table  48, 
are,  of  course,  averages.  It  will  be  of 
interest  briefly  to  indicate,  for  a  single 
group  of  stores,  how  nearly  these 
averages  characterize  the  more  de- 
tailed conditions.  The  103  stores  with 
annual  sales  in  1919  of  $40,000  to 
$80,000  may  be  chosen  for  illustrative 
purposes.  The  average  amount  sold 
per  salesman  in  the  stores  having 
selling  expense  less  than  $6  per  $100 
of  total  net  sales  was  $19,516.  How- 
ever, in  32  per  cent,  of  these  stores, 
the  amounts  sold  per  salesman  were 
less  than  $16,000  and  in  68  per  cent, 
in  excess  of  this  amount.  For  those 
stores  having  selling  expense  of  $6 
to  $12  per  $100  of  total  net  sales,  the 
average  amount  was  $15,788.  In  55 
per  cent,  of  the  stores  the  amounts 
sold  per  full-time  sales-person  were 
less  than  $16,000  and  in  45  per  cent, 
in  excess  of  this  amount.  For  stores 
with  selling  expense  of  $12  and  over 
per  $100  of  total  net  sales  the  average 
amount  w^as  $13,122.  In  82  per  cent, 
of  the  stores,  however,  the  amounts 
sold  per  full-time  sales-person  were 
less  than  $16,000  and  in  18  per  cent, 
of  the  stores,  $16,000  and  over.  The 
inverse  relationship  between  the  aver- 
age amount  of  selling  expense  per 
$100  of  total  net  sales  and  the  amount 
sold  per  full-time  sales-person  shown 
in  Table  48  also  holds  for  the  amounts 
cf  sales  in  detail. 


94 


TABLE  48 


TOTAL  NET  SALES,  NUMBER  OF  FULL-TIME  SALES-PEOPLE,  AND  AMOUNT  OF  SALES  PER 

FULL-TIME  SALES-PERSON,  FOR  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT 

OF   SELLING   EXPENSE   PER   $100   OF   TOTAL   NET   SALES,    1919 


p     — — 

Amoijnt  of 

Selling 

Expense 

per  JlOO  of 

Total 

Het  Sales 

Kujnber 

of 
Stores 

Total 
Ket  Sales 

Number  of 

Pull-tine 

Sales-people 

Net  Sales  per  Piai-tl,ne  Sales-person 

Total 
Net  Sales 

Amount 

Per  Cent. 

(In  OOO'a) 

Graphic         .  ^  , 

Actual 

?  20   40   60  80  100  120 

Total 
(Average ) 

269 

833,637,842 

1,666.5 

$20,215 

100.0 

Total 

Under  $6 
$6  to  $12 
Sl2  &  over 

68 

149 

52 

3,842,272 

20,365,179 

9,460,391 

195.0 

1,001.3 

470.2 

19,704 
20,359 
20, 120 

97,5 
100.7 
99.5 

(Average ) 

f 

Total 
(Average ) 

31 

963,213 

56.3 

16,958 

83.9 

Under  $40 

Ifeder  $S 

$5  to  $12 
$12  &  over 

15 
14 

1 

493,027 

445,275 

23,911 

23.8 

30.6 

2.4 

20,715 
14,584 

9,963 

102.5 
72.1 
49.S 

Total 
(Average ) 

103 

5,872,443 

353.3 

16,622 

82.2 

#40  to  ^0 

Under  $5 

§6  to  $12 
§12  8:  over 

41 
51 
11 

2,257,946 

2,941,336 

673,161 

115.7 

186.3 

51.3 

19,516 
15,788 
13,122 

96.5 
78.1 
64.9 

Total 
(Average ) 

92 

10,840,797 

564.2 

19,214 

95.0 

Under  $6 
$6  to  Jl2 
§12  &  over 

11 
56 
25 

1,091,299 
6,752,827 
2,996,671 

56.5 
344.3 
164.4 

19,663 
19,613 
18,228 

97.3 
97.0 
90.2 

;J80  to  $180 

TotaJ 
(Average ) 

43 

16,011,389 

692.2 

23,131 

114.4 

■';130  &  over 

Under  {5 

$5  to  Jl2 
Jvl2  fc  ovor 

28 

IS 

10,244,741 
5,766,648 

440.1 
252.1 

23,278 
22,874 

115.2 
113.2 

Average  $20, 

205 

The  discussion  immediately  above 
refers  to  the  year  1919  alone.  In  view 
of  the  increase  in  the  amounts  of  sales 
per  full-time  sales-person  and  the  de- 
crease in  selling  expense  per  $100  of 
total  net  sales  from  year  to  year,  it 
has  been  thought  necessary  to  extend 
the  analysis  by  comparing  a  group  of 


identical  stores  for  the  years  1919, 
1918,  and  1914  in  the  particulars 
under  discussion.  For  this  purpose 
the  records  of  146  identical  stores  are 
available. 

Table  49  shows  for  438  store-years 
the  amounts  of  selling  expense  per 
$100  of  total  net  sales  and  per  $100 


95 


TABLE  49 

AMOUNT  OF  SELLING  EXPENSE  PER  $100  OP  TOTAL  NET  SALES  PER  $1,000   OF  SALES 

PER    FULL-TIME    SALES-PERSON,    FOR    146    IDENTICAL    STORES    CLASSIFIED 

BY  SIZE  OF  STORE  AND  BY  AMOUNT  OF  SALES  PER  FULL-TIME 

SALES-PERSON,   1919,  1918,  AND  1914,   COMBINED 


AnO'int   of 
Salee  |>cr 
Pjll-tliie 
Seles-parson 
(In  OOO'l) 

Kunbcr 

or 
Store- 
jeara 

Selling  Expense   pfir    $100   of 
Total   llct   Soles 

Selll 

Tfi  Bipeiuo  per  Oloo  of  Tctjl  li;t  Sale:  per  51,000 
of  Solec   per  F\ill-tl^e  walee-peraon 

Total 
Net  Selce 
(In  OCO'a) 

Amo'jnl 

Per  Cent. 

Ano>int 

Per  Cent. 

Graphic                      Let-  1 
0     20     40     60     00   100   120   1<0 

OTaF>>lc 
3      20      40      60      80    100    120    140    160    190    200    22 

Aet'ial 

0 

Total 

«Avor»R«) 

438 

$10.76 

100.0 

Co. 67 

100.0 

Under  Jl2 
tl2   to  $16 
Sl6   to  $24 
824   to   $32 
S3;  Ik  over 

151 
107 
118 
39 
23 

11.15 
10.97 
11.22 
10.05 
8.34 

104.0 
102.0 
104.3 
S3. 4 
77.5 

1.19 

o.eo 

0.59 
0.37 
0.';2 

177.6 
119.4 
88.1 
55.2 

32.8 

Totel 

lAveraee ) 

j 

Total 
CAveroge) 

125 

8.57 

79.6 

c.<); 

122.4 

Under  $12 
8l2  to  $16 
816   to   $24 
S24   to   $32 
S32  i  over 

71 
23 

n 

10 
4 

10.15 
6.90 
7.02 
6.20 
5.02 

S4.3 

e4.i 

65.2 
67.6 
«6.7 

1.31 

0.50 
0.37 
0.-!3 
0.14 

195.5 
74.6 
55.2 
34.3 
20.0 

Under  $40 

1 

^^^^^_ 

Total 
f Average) 

163 

9.30 

65.5 

0.69 

103.0 

Onder  $12 
$12  to  ?ie 

*16   to   $24 

824    to   $32 
$32  1  over 

63 

48 
38 
1 

1 

10.92 
9.45 
7.62 
7.15 
4.03 

100.6 

e7.e 

■70.S 
«£.4 
S7.S 

1.06 
0.68 
0.42 
0.26 
0.09 

161.2 
101. S 
62.T 
96.8 
13.4 

— 

— 

Total 
lAveraco' 

108 

10.70 

99.4 

0.6S 

97.0 

Itader  $12 
812  to  $16 
Sl6  to  $24 
•24   to  $32 
8S2  4  ovw 

14 

31 
46 
12 
5 

11.63 
11.11 
10.26 
10.29 
11.38 

106.1 

103.3 
95.4 
95.6 

105.8 

I.IS 

171.6 
119.4 

eo.6 

SB  .2 

J80  to  $180 

0.54 
0.39 
0.31 

^^^^""""i 

"" 

Total 
(Avere^e ) 

42 

12.09 

112.4 

0.60 

89.6 

Under  $12 
$12  to  lie 

»16  to  $24 
•S4   to   $32 
»32  i  over 

3 
S 
17 
10 
7 

14.76 
14.03 
13.13 
10.56 
8.45 

137.2 
1S0.4 
122.0 
96.1 

K.i 

1.41 
1.04 

0.67 
0.38 
0.23 

210.4 
155.8 

c 

34.5 

of  sales  for  each  $1,000  sold  per  full- 
time  sales-person  for  stores  classified 
by  size  and  by  the  amounts  so  sold. 
The  total  amounts  of  selling  expense 
per  $100  of  total  net  sales  for  each 
group  of  stores  classified  by  size,  while 
differing  in  degree  from  the  figures 


shown  for  1919,  reveal  the  same  un- 
mistakable tendency  for  the  amounts 
to  increase  as  the  stores  increase  in 
size.  An  inverse  tendency  is  again 
shown  in  the  amounts  of  selling  ex- 
pense per  $100  of  total  net  sales  per 
$1,000  sold  per  full-time  sales-person 


96 


for  the  stores  classified  by  size.  For 
stores  of  a  given  size,  the  amounts  of 
selling  expense  per  $100  of  total  net 
sales  and  per  $100  of  total  net  sales 
for  each  $1,000  sold  per  full-time 
sales-person  decrease  as  the  amounts 
sold  per  full-time  sales-person  in- 
crease. 


Table  49  gives  the  data  for  the  com- 
bined years  and  should  be  closely 
studied  in  connection  with  Tables  50 
to  52,  inclusive,  for  the  years  1919, 
1918,  and  1914,  respectively.  It  is 
unnecessary  to  point  out  in  detail  the 
size  of  the  amounts  of  selling  expense 
in  terms  of  sales  alone  and  in  terms 


TABLE  50 

AMOUNT  OF  SELLING  EXPENSE  PER  $100  OP  TOTAL   NET  SALES  PER  $1,000   OF  SALES 

PER  FULL-TIME  SALES-PERSON,   FOR  146   STORES   CLASSIFIED  BY   SIZE  AND 

BY    AMOUNT    OF    SALES    PER    FULL-TIME    SALES-PERSON,    1919 


CltiDirieil 

Tot.l 
Mat  SaKa 
(In  OOO'a) 

Amount  of 
Sales   per 
Pull-tliM 
Salea-peraon 
(In  OOO'a) 

Kunber 
of 

Storaa 

Sal 

ling  Expense  per  $100  of  To 
Met  Ealee 

al 

Selling  Eipenae  por  $100  of  Total  Net  Salea  per  $1,000 
of  Sales   per  Poll-time  Sales-person 

Amount 

Per  Cent. 

Aatount 

Per  Cent. 

Graphic 
20     40     6p     69  lOO  120  14< 

1    Actual 
3 

0     20     40 

•"•phi'                                       j  Actual 
60     80   100   120   140   160   180  200  220 

Total 
(Average) 

146 

(10.39 

100.0 

$0.51 

i 

100.0 

!    ■■ 

^^^^^H 

Orvlsr  (12 
(12  to   (16 
(16  to   (24 
(24  to  (32 
(32  k  ovar 

15 
30 
61 
21 
19 

9.21 
10.13 
11.34 
9.99 
8.62 

6.77 

88.6 
97.5 

109.1 
96.2 
83.0 

0.95 
0.72 
0.60 
0.36 
0.2S 

; 

186.3 
141.2 
117.6 

1 

(Avorags) 

i 

=!" 

45.1 

Total 
(ATorage ) 

14 

65.2 

0.43 

^^^ 

84.3 

Ondar  (12 
(12  to  (16 
(16  to  (24 
(24  to  (32 
(32  *  o«r 

1 
4 
2 
2 

6.99 
8.07 
7.03 
4.7S 
7.11 

67.3 
77.7 
67.7 
45.5 
68.4 

0.71 
0.60 
0.35 
0.18 
0.20 

139.2- 
117.6 
68.6 
35.3 
39.2 

Ocdar  (40 

! 

= 

■■ 

Total 
(Average ) 

54 

7.49 

72.1 

0.46 

90.2 

^^^^ 

Under  (12 
(12  to  (16 
(16   to   (24 
(24   to   $32 
(32  4  over 

8 
18 
18 
4 
6 

10.12 
8.70 
6.68' 
S.IO 
4.22 

97.4 
83.7 
64.3 
68.7 
40.6 

1.06 
0.61 
0.36 
0.23 
0.10 

: 

207.8 
119.6 

70.6 
45.1 
19.6 

(40  to  leo 

i 

i 

3- 

Total 
(Avorocc) 

54 

10.19 

98.1 

0.56 

* 

Under  (12 
(12  to  (16 
(16   to   $24 
.  (24  to   $32 
(32  i   ovor 

2 

11 
30 
1 
4 

8.95 
11.40 
9.94 
8.43 
12.88 

86.1 
109.7 
95.7 
81.1 
124.0 

0.89 
0.82 
0.53 
0.32 
0.35 

174.5 
160.8 
103.9 
62.7 

(80  to  (180 

!                       1 

i 

Total 
(Average) 

24 

11.54 

111.1 

0.47 

i 

(180  k  over 

Under  $12 
$12  to  (16 
(16  to  (24 
(24   to   (32 

$32  4  ovor 

8 
6 
7 

13.90 
10.73 
8.46 

isj.e 

103. 3 

ei.3 

0.73 
0.39 
0.23 

LZ^  i 

Average  $10.39 


97 


of  sales  per  $1,000  sold  per  full-time 
sales-person  for  the  stores  in  each  of 
the  years.  The  discussion  of  the  269 
stores  for  1919  applies  equally  well 
to  Table  50  which  is  based  upon  the 
records  of  146  stores  in  the  same  year. 
Minor     differences     in     the     actual 


amounts  and  in  the  tendencies  re- 
vealed may  be  seen  from  year  to  year 
by  consulting  Tables  51  and  52  for 
the  years  1918  and  1914,  respectively. 
A  comparison  of  the  changes  in  the 
amounts  of  selling  expense  from  year 
to  year  for  this  group  of  identical 


TABLE  51 

AMOUNT  OF  SELLING  EXPENSE  PER  $100  OF  TOTAL  NET  SALES  PER  $1,000   OF  SALES 

PER  FirLL-TIME  SALES-PERSON,  FOR   146  STORES   CLASSIFIED  BY   SIZE  AND 

BY    AMOUNT    OP    SALES    PER    FULL-TIME    SALES-PERSON,    1918 


Classlflad 

Tot>l 
Set  Sales 
(In  000' «) 


Anount  of 
Sales  per 
PuU-tln» 
Sales-poraor 

(m  coo's) 


Selling  Expanse  par  $100  of  Total 


0   20   40   eo   80  100  120  140 


GrapMc  |  Actual 

0   20   40   CO   60  100  ino  140  160  180 


Total 
(Avaraga) 


Dndar  il2 
#12  to  $1$ 
$16  to  $24 
•24  to  $32 
tS2  &  ova? 


(Avsraga) 


Obdsr  $40 


Dhflar  $12 
$12  to  $16 
$16  to  $24 
324  to  $32 
$32  &  over 


Under  $12 
$12  to  $16 
$16  to  $24 
$24  to  $32 
$32  Be  ovor 


Total 
(Average) 


tBo  to  $ieo 


Ondar  $12 
$12  to  $16 
$16  to  $24 
$2«  to  $32 
$32  &  ovor 


Total 
(Avarfge) 

Dhder  $12 
$12  to  $16 
$16  to  $24 
$24  to  $32 
$32  4  over 


10.24 
11.25 
11.37 
10. U 
5.53 


8.25 


9.90 
7.17 
7.53 
6.48 
2.77 


14.39 
12.23 
9.32 


Average  $10.94 


102.9 
103.9 
S2.4 
51.0 


75.4 

SO. 5 
65. S 
68.8 
SO. 2 
25.3 


es. 


95.8 
67,0 
73.7 
SI. 7 


100.1 


91.4 
C3.3 
105.9 
115.7 
03.1 


131.6 
111.8 

es.2 


So. 70 


1.01 
0.84 
0.57 
0.37 
0.15 


0.70 

1.14 

0.53 
0.40 


0.71 


0.99 
0.70 
0.44 

0.12 


0,64 


0.89 
0.72 
0.58 
0,48 
0,19 


1.13 
0.60 
0.34 


Aversga  $0.70 


100.0 

144.3 
120.0 
81.4 
62.9 
21.4 


100.0 

162.9 
75.7 
57.1 
32.9 

oe.6 


101.4 


141.4 
100,0 
62.9 
17.1 


91.4 

127.1 
102.9 
88.9 
68.6 
27,1 


100.0 


161.4 
65.7 
48.6 


98 


stores  as  classified  is  interesting.  In 
Table  43  for  this  same  group  of  stores 
it  was  shown  that  the  amounts  of 
selling  expense  per  $100  of  total  net 
sales  decreased  from  1914  to  1918, 
and  1918  to  1919.  A  similar,  but 
more  pronounced  decrease  was  ob- 
served for  the  amounts  of  selling  ex- 
pense per  $100  of  total  net  sales  per 
$1,000  sold  per  full-time  sales-person. 
These  tendencies  for  stores  unclassi- 
fied as  to  size,  as  in  Table  43,  are 
duplicated  in  Tables  50  to  52,  inclu- 
sive, where  stores  are  classified  by- 
size  and  by  the  amounts  sold  per 
person.  As  illustrative  of  the  changes 
in  the  amounts  from  year  to  year  for 
the  stores  arranged  in  this  manner, 
the  group  having  sales  from  $40,000 
to  $80,000  may  be  chosen.  For  the 
combined  years  the  average  amount 
of  selling  expense  per  $100  of  total 
net  sales  was  $9.20.  For  1914  it  was 
$10.96,  for  1918  it  was  $9.36,  and  for 
1919,  $7.49.  Similar  decreases  from 
year  to  year  are  observed  for  stores 
having  sales  of  $40,000  to  $80,000, 
and  with  amounts  sold  per  full-time 
sales-person  of  less  than  $24,000.  For 
the  stores  having  amounts  sold  per 
full-time  sales-person  in  excess  of 
$24,000  the  number  of  instances  are 
too  few  to  serve  as  a  basis  for  gener- 
alization. Had  more  stores  in  this 
group  been  available  for  study,  it  is 
felt  that  the  direction  of  change 
would  have  been  the  same.  Analysis 
of  the  stores  with  larger  annual  sales 
gives  the  same  general  result. 

The  amounts  of  selling  expense  per 
$100  of  total  net  sales  for  each  $1,000 
sold  per  full-time  sales-person,  for  the 


stores  with  annual  sales  of  $40,000 
to  $80,000  may  be  compared  also  from 
year  to  year.  For  the  combined  years, 
the  amount  was  $0.69.  For  1914  it 
was  $0.97,  for  1918  it  was  $0.71,  and 
for  1919,  $0.46.  That  is,  the  amounts 
decreased  from  1914  to  1918,  and  1918 
to  1919,  as  one  would  expect  in  view 
of  the  larger  amounts  sold  per  sales- 
person in  the  later  than  in  the  earlier 
years.  Similar  decreases  occur  from 
year  to  year  for  the  stores  in  this 
group  when  classified  by  the  amounts 
sold  per  full-time  sales-person.  The 
reader  may  compare  the  amounts  by 
consulting  the  details  of  Tables  50  to 
52,  inclusive. 

The  amounts  of  selling  expense  per 
$100  of  total  net  sales  for  each  $1,000 
sold  per  full-time  sales-person  depend 
upon  the  relation  first,  of  selling  ex- 
pense to  sales,  and  second,  of  the  num- 
ber of  sales-people  to  the  total  amount 
sold  during  the  year.  Tables  53  to 
55,  inclusive,  are  introduced  to  show 
from  year  to  year,  for  stores  classi- 
fied by  size  and  by  amounts  of  selling 
expense  in  relation  to  sales,  the  extent 
of  the  salesmen's  activities.  The  de- 
tails should  be  consulted  in  connection 
with  Tables  49  to  52.  A  moment's 
consideration  of  them  may  be  of 
interest.  For  the  combined  years, 
based  upon  438  store-years,  the  aver- 
age amount  of  goo'ds  sold  per  full- 
time  sales-person  was  $16,149.  This 
amount  agrees  veiy  closely  with  the 
result  secured  in  Volume  I,  page  92, 
of  the  Bureau's  study  of  Costs,  Mer- 
chandising Practices,  Advertising  and 
Sales  in  the  Retail  Distribution  of 
Clothing,  where  the  average  amount 


99 


TABLE  52 

AMOUNT  OF  SELLING  EXPENSE  PER  $100  OF  TOTAL  NET  SALES  PER  $1,000   OF  SALES 

PER  FULL-TIME  SALES-PERSON,  FOR  146   STORES   CLASSIFIED  BY   SIZE  AND 

BY    AMOUNT    OF    SALES    PER    FULL-TIME    SALES-PERSON,    1914 


Amomit  of 
Sales  per 
Pull- time 
Sales-peraon 
(In  OOc'a) 

Number 

of 
Stores 

Soiling  Expense  per  $100  of  Total 
Net  Sales 

Selling  Expense  per  $100  of  Total  lict  Sales  per 
$1,000  of  Seles  per  Piill-tlme  Sales-person 

Total 
Net  Salee 

Amount 

Per  Cent. 

Aaoluit 

Per  Cent. 

3     20     40 

Graphic 
60     60   100    120   140    16C 

Actual 

Graphic 
3      20      40      60     80   100   120   140    160 

Actual 

Total 
(Average) 

146 

100.0 

$1.00 

100.0 

i 

Under  $12 
$12  to  #16 
$16  to  024 
{24  to  $32 
$32  &  over 

66 
55 
20 
4 

1 

12.02 
11.19 

9.81 
11.39 

2.86 

105.9 
98.6 
86.4 

100.4 
25.1 

1.34 

0.80 
0.53 
0.41 
0.08 

134.0 
80.0 
53.0 
41.0 
8.0 

Total 
(Average ) 

i 

i 

Total 
(Average ) 

71 

9.19 

81.0 

1.02 

102.0 

^^^^^  i 

Under  tl2 
$12  to  (H6 
$16  to  $24 
$24  to   $32 

$32  k  over 

45 

16 
8 

S 

10.66 
6.68 
6.61 
6.75 

93.9 
58.9 
68.2 
69.6 

1.48 
0.48 
0.36 
0.25 

148.0 
48.0 
36.0 
25.0 

Under  $40 

i 

j 

Total 
(Average) 

48 

10.96 

96.6 

0.97 

97.0 

Under  $12 
$12   to  $16 
$16  to  $24 
$24  to  $32 
$32  &  over 

31 
10 
5 
1 
1 

11.26 
10.56 

9.93 
18.06 

2. 85 

99.2 
93.0 
87. S 
159.1 
26. 1 

1.17 
0.77 
0.69 
0.63 
0.08 

117.0 
77.0 
56.0 
63.0 
6.0 

$40   to  $B0 

^^^ 

i 

t 

I 

"■■* 

Total 
(Average ) 

22 

11.63 

102.5 

0.90 

Under  $12 
$12  to  $16 
$16  to  $24 
$24  to  $32 
$32  4  over 

7 
9 
6 

13.02 
11.97 
9,58 

114.7 

105.5 
84.4 

1.34 

0.88 
0.50 

134.0 
88.0 

$80  to  $180 

1 

j 

. 

Total 
(Average) 

5 

IS. 93 

122.7 

1.08 

108,0 

i 

Under  $12 
$12  to  $16 
$16  to  $24 
$24  to  $32 
$32  i  over 

5 
1 

1 

14.76 
13.34 
IJ.ll 

rw.o 

U7.6 
116. S 

1.41 
0.89 
0.73 

141.0 
89.0 
73.0 

$180  &  over 

^"^ 

1 

^^^mM^mm^am 

! 
I 

i 

1 

Average  $11 .ZS 


for  974  store-years  is  seen  to  be  $16,- 
230.  In  1919,  the  average  amount  for 
146  stores  was  $20,437 ;  in  1918  it  was 
$15,613,  and  in  1914,  $11,345.  These 
amounts  for  the  individual  years  like- 
wise closely  correspond  to  those  shown 
in  Tables  61,  62,  and  63,  respectively, 


in  Volume  I  of  the  Bureau's  study, 
referred  to  above.  Moreover,  the  in- 
creases from  year  to  year  also  hold 
for  each  group  of  stores  when  classi- 
fied by  size.  When  the  stores  are 
grouped  by  size,  the  amounts  sold  per 
full-time   sales-person   are   shown  to 


100 


increase  for  the  combined  years  and 
for  each  year  as  the  size  of  the  store 
increases.  This  condition  also  agrees 
with  that  shown  in  Volume  I  of  the 
Bureau's  study. 

It  was  sho\Aai  in  Table  48  for  1919 
for  269  stores  that  the  amounts  sold 
per   full-time    sales-person   vary    in- 


versely with  the  amounts  of  selling 
expense  per  $100  of  total  net  sales, 
when  the  stores  are  treated  as  a  total 
and  when  classified  by  size.  A  similar 
condition  holds,  as  is  shown  in  Tables 
53  to  56,  for  a  group  of  identical 
stores  for  the  combined  and  indi- 
vidual years  1919,  1918,  and  1914. 


TABLE  53 

TOTAL  NET  SALES,  NUMBER  OF  FULL-TIME  SALES-PEOPLE,  AND  AMOUNT  OF  SALES  PER 

FULL-TIME    SALES-PERSON,    FOR    146    IDENTICAL   STORES    CLASSIFIED   BY 

SIZE  AND  AMOUNT  OF  SELLING  EXPENSE  PER  $100  OF  TOTAL 

NET  SALES,    1919,    1918,    AND    1914,    COMBINED 


ClasBlfled 

Total 
Net  Salea 
(in  000' b) 

Amount  of 

Selling 

Expense 

per  $100  of 

Total 

Net  Salea 

Number 

of 
Store- 
years 

Total 
Net  Sales 

Number  of 
Pull- time 
Saloa-poople 

Not  Sales  per  Pull-time  Sales-person 

Amount 

Per  Cent. 

Graphic          1 

1  Actual 
5  20   40   60  80  100  120  140  160 

Total 
(Average ) 

438 

$42,655,162 

2,641.4 

$16, 149 

i 

100.0 

Total 

Under  $6 

$6  to  $12 
$12  &  over 

96 
241 

102 

4,473,628 
25,752,733 
12,428,801 

278.3 
1,509.8 

853.3 

16,075 
17,057 
14,566 

99.5 
105.6 
90.2 

(Averoge) 

i 

^"T 

1 
j 

Total 
(Average ) 

125 

3,490,472 

335.7 

10,398 

64.4 

Under  $40 

Under  $6 

$6  to  $12 
$12  &  over 

41 

63 
21 

1,143,342 

1,748,712 

598,418 

90.1 
160.2 
85.4 

12, 690 
10,916 
7,007 

78.6 
67.6 
43.4 

^^^■^ 

Total 
(Average) 

163 

9,223,468 

689.4 

13,379 

82.8 

$40  to  Seo 

Under  $6 

$6  to  $12 
$12  &  over 

45 
83 

35 

2,435,176 
4,711,780 
2,076,512 

140.7 

376.2 
172.5 

17,308 
12,525 
12,038 

107.2 
77.6 
74.5 

1 

; 

1 

Total 
(AverDge) 

108 

12,642,526 

764.1 

16,546 

102.5 

1 

$80  to  $180 

Under  $6 

$6  to  $12 
$12  8c  over 

9 
66 

33 

895,110 
7,959,099 
3,788,317 

47.5 
476.1 
240.5 

18,844 
16,717 
15,752 

116.7 
102.5 
97.5 

; 

Total 
(Average) 

42 

17,298,696 

852.2 

20,2;9 

125.7 

i 

$180  Jc  over 

Under  $6 

$6  to  $12 
$12  &  over 

29 
13 

11,333,142 
8,965,554 

497.3 
354.9 

22,769 
16,809 

141.1 
104.1 

1  ^^" 

Average  $16,149 


101 


From  the  discussion  of  the  amounts 
of  selling  expense  per  $100  of  total 
net  sales  and  per  $100  of  sales  per 
$1,000  sold  per  full-time  sales-person 
for  stores  classified  by  size  and  by  the 
amounts  sold  per  full-time  sales- 
person, it  may  be  concluded  as  fol- 
lows:   First,  the  amounts  of  selling 


expense  per  $100  of  total  net  sales 
roughly  decrease  as  the  amounts  sold 
per  full-time  sales-person  increase. 
This  condition  is  true  not  only  for  the 
stores  treated  as  a  whole,  but  also 
when  they  are  classified  by  size. 
Moreover,  it  is  true  for  the  combined 
as  well  as  for  the  individual  years. 


TABLE  54 

TOTAL  NET  SALES,  NUMBER  OP  FULL-TIME  SALES-PEOPLE,  AND  AMOUNT  OF  SALES  PER 

FULL-TIME  SALES-PERSON,  FOR  146  STORES  CLASSIFIED  BY  SIZE  AND  AMOUNT 

OF   SELLING   EXPENSE   PER   $100   OF   TOTAL   NET    SALES,    1919 


Amount  of 

Selling 

Expense 

per  §100  of 

Total 

Hot  Sales 

number 

of 
Stores 

Total 
Net  Sales 

Huraber  of 

Pull-time 

Sales-people 

Not  Sales  per  Full-time  Sales-person 

Total 
Net  Sales 

Amount 

( 

Per  Cant. 

(In  coo's) 

Graphic         .  .   , 
"                             Actual 

5  20  40   60  80  100  120  140 

Total 
(Average ) 

146 

$19,931,753 

975.3 

$20,437 

Total 

Under  |6 

f6  to  $12 
§12  &  over 

39 
78 
29 

2,447,315 

12,206,633 

5,277,805 

127.6 
560.6 
287.1 

19,180 
21,774 
18,333 

93.3 
106.5 
89.9 

(Average ) 

1 

Total 
(Average) 

14 

428,714 

27.2 

15,762 

77.1 

1 

ISider  $40 

Dnder  $6 

$6  to  |12 
}12  &  over 

5 

9 

140, 498 
238,216 

7.9 

19.3 

17,785 
14,933 

87.0 
73.1 

Total 
(Average ) 

54 

3,059,173 

187.6 

16, 307 

79.8 

$40  to  $80 

Cnder  $5 

$5  to  512 
$12  &  over 

25 

22 

7 

1,411,707 

1,265,481 

381,935 

72.2 
84.1 
31.3 

19,553 
15,047 
12,204 

95.7 
73.6 
59.7 

; 
1 

Total 
(Average) 

54 

6,354,238 

347.3 

13,296 

89.5 

#80  to  $180 

Dndor  JS 

§6  to  $12 
$12  S:  over 

9 
29 

16 

895,110 
5,572,114 
1,887,014 

47;5 
197.1 
102.7 

18,844 
18,123 
18,374 

92.2 
88.7 
89.9 

Total 
(Average) 

24 

10,089,628 

413.2 

24,418 

119.5 

^lao  k  over 

Under  $6 

$6  to  $12 
$12  &  over 

18 
G 

7,080,822 
3,008,806 

260. 1 
153.1 

27,223 
19,653 

133.2 

96.2 

Average  §20,437 


102 


Second,  the  amounts  of  selling  ex- 
pense per  $100  of  total  net  sales  per 
$1,000  sold  per  full-time  sales-person 
increase  as  the  stores  increase  in  size 
and  decrease  as  the  amounts  sold  per 
full-time  sales-person  increase.  That 
is,  relative  to  the  size  of  the  stores, 
the  amounts  vary  directly,  but  rela- 


tive to  the  amounts  sold  per  full-time 
sales-person,  they  vary  inversely. 
This  condition  holds  not  only  for  the 
stores  in  the  combined  years,  but  also 
for  the  stores  in  each  of  the  years 
1919,  1918,  and  1914. 

The  practical  aspects  of  these  con- 
clusions from  the  standpoint  of  the 


TABLE  55 

TOTAL  NET  &/\LES,  NUMBER  OF  FULL-TIME  SALES-PEOPLE,  AND  AMOUNT  OF  SALES  PER 

FULL-TIME  SALES-PERSON,  FOR  146  STORES  CLASSIFIED  BY  SIZE  AND  AMOUNT 

OF   SELLING  EXPENSE   PER   $100   OF    TOTAL   NET    SALES,    1918 


Araoiint  cf 

Selling 

Excense 

per  5lC0  of 

Tctal 

"et  Sales 

KxCT.ber 

cf 
Stores 

Total 
Ket  Sales 

Nvunber  of 

Pull-tine 

SQles-people 

Ket  Saler   per  Pull-tire  Sales-person 

Total 
Ket  Sales 

Amount 

c 

For  Cent. 

(In  OCO's) 

Graphic                            ,    ^      , 
Actual 

)      20      40      60     80   100    120   140 

Tctal 
(Average ) 

146 

$13,981,267 

e£5.5 

CIS, 613 

100.0 

i 

Total 

Under  $6 

S6  to  512 
ftl2  &  over 

31 
83 
32 

1,266,945 
8,904,157 
3,720,165 

EC.  6 
547.5 
261.4 

14,6-0 
16,428 
14,232 

93.7 

105.2 

91.2 

(Averfcge) 

i 

Total 
(Average) 

40 

1,193, €73 

100.8 

11,842 

75.8 

Under  t40 

Under  $6 
C€  to  ei2 
$12  &  over 

15 

19 

6 

437,693 
564,477 
191,503 

32.4 
45.4 
23.0 

15,509 
12,433 
8,326 

86.5 
79.6 
53.3 

i 

^^^^^ 

Total 
(Average ) 

61 

3,526,649 

267.6 

13,179 

84.4 

Under  S6 

$6  to  $12 
$12  &  over 

16 

32 
13 

829,262 

1,034,677 

862,620 

54.2 

142.0 

71.4 

15,300 
12,920 

12,084 

98.0 
82.8 
77.4 

$40   to  J80 

Total 
(Average ) 

32 

3,74  6,707 

219.9 

17,038 

109.1 

i 

$80   to  fl80 

Under  ?6 

56  to   $12 
$12  &  over 

23 
9 

2,716,734 
1,027,973 

161.4 
58.5 

16,845 
17,572 

107.9 
112.5 

Total 
(Average) 

13 

5,514,258 

307.2 

17,950 

115.0 

tlBO  fc  over 

Under  $6 
#6  to  $12 
$12  &  over 

9 
4 

3,676,369 
1,637,689 

198.7 

ice.  5 

19,509 
15,096 

125.0 
96.7 

Avorac©  $15,613 


103 


merchant  may  be  stated  as  follows: 
If  it  is  desired  to  decrease  selling 
expense  in  relation  to  sales,  one 
method  by  which  it  may  be  done  is 
to  increase  the  amounts  sold  per  full- 
time  sales-person  per  year.  The  ex- 
tent to  which  the  reduction  may  be 
expected,  for  stores  of  a  given  size. 


is  revealed  in  the  detailed  figures  in 
Tables  46  to  56,  inclusive. 

In  the  foregoing  discussion  the 
amounts  of  selling  expense  have  been 
expressed  per  $100  of  sales,  per  $100 
of  total  net  sales  per  stock  turnover, 
and  per  $100  total  net  sales  for  each 
$1,000    sold    for    a    full-time    sales- 


TABLE  56 


TOTAL  NET  SALES,  NUMBER  OF  FULL-TIME  SALES-PEOPLE,  AND  AMOUNT  OF  SALES  PER 

FULL-TIME  SALES-PERSON,  FOR  146  STORES  CLASSIFIED  BY  SIZE  AND  AMOUNT 

OF   SELLING   EXPENSE   PER   $100    OF   TOTAL    NET    SALES,    1914 


Classified 

Amount  of 

Selling 

Expense 

per  5100  of 

Total 

Net  Sales 

Number 

of 
Stores 

Total 
Net  Sales 

Hunter  of 

Full-time 

Sales-people 

p • 

Net  Sales  per  Pull-tlce  Sales-person 

Total 
Met  Sales 
(In  OOO'a) 

Amount 

Per  Cent. 

Actual 
)  20   40  60  80  100  120  140 

Total 
(Average) 

146 

$8,742,122 

770,6 

$11,345 

100.0 

Total 

Under  $5 

S6  to  $13 
$12  i  over 

25 
80, 
41 

759,368 
4,551,943 
3,430,811 

64.1 
401.7 
304.8 

11.847 
11, 332 
11,256 

104.4 
99.9 
99.2 

(Average ) 

^■■■■^■^ 

i 

1 

i 

Total 
(Average ) 

71 

1,868,085 

207.7 

8,994 

79.3 

Under  ?40 

Under  §6 

>6  to  $18 
$12  &  over 

21 
35 
15 

565,151 
896,019 
406,915 

49.8 
95.5 
62.4 

11,348 
9,382 
6,521 

100.0 
82.7 
57.5 

i 

Total 
(Average ) 

48 

2,637,646 

234.2 

11,262 

99.3 

|40  to  580 

Under  $6 
$6  to  §12 
$12  Jc  over 

4 
29 
15 

194,217 

1,611,722 

831,707 

14.3 

150.1 

69.8 

13,582 
10,738 
11,916 

119.7 

94.6 

105.0 

; 

1 

Total 
(Average ) 

22 

2,541,581 

196.9 

12,908 

113.8 

$30  to  $180 

Under  *6 

$6  to  $12 
$12  8c  over 

14 
8 

1,668,251 
873,330 

117.6 
79.3 

14,186 
11,013 

125.0 
97.1 

i 

1 

Total 
(Average ) 

5 

1,694,810 

131.8 

12,859 

113.3 

^^^^^^^^ 

$180  S-.  over 

Under  $6 
$6  to  tl2 
Sl2  U   over 

2 
3 

375,951 
1,318,859 

38.5 
93.3 

9,765 
14, 136 

■  ^■^Mll^^   ' 

86.1 
124.6 

Average   Jll,345 


104 


person.  They  may  also  be  stated  in 
terms  of  $100  of  total  expense,  per 
$100  of  total  expense  per  stock  turn- 
over, and  per  $100  of  total  expense 
per  $1,000  sold  per  full-time  sales- 
person. For  these  latter  purposes, 
the  records  of  269  stores  are  available 
for  1919  and  146  for  each  of  the  years 
1919,  1918,  and  1914.  By  following 
the  order  of  discussion  previously 
employed,  the  amounts  may  now  be 
related  to  total  expense. 

Table  57,  which  applies  to  269 
stores  for  the  year  1919,  shows  the 
amounts  of  selling  expense  in  stores 
classified  by  size  and  by  the  amount 
of  sales  per  full-time  sales-person. 
The  units  of  analysis  used  are:  for 
each  $100  of  total  expense,  and  for 
each  $100  of  total  expense  per  stock 
turnover. 

It  will  be  recalled  from  an  earlier 
discussion  that  the  amounts  of  selling 
expense  and  total  expense  per  $100 
of  total  net  sales  increase  as  the  stores 
increase  in  size.  When  the  amounts 
of  selling  expense  are  expressed  in 
terms  of  $100  of  total  expense,  that  is, 
as  proportions  of  total  expense,  they 
also  increase  as  the  stores  increase  in 
size.  This  means  that  the  rate  at 
which  selling  expense  increases  with 
the  size  of  the  store  exceeds  that  for 
total  expense. 

For  the  269  stores  considered  in 
Table  57,  the  average  amount  of  sell- 
ing expense  per  $100  of  total  expense 
in  1919  was  $48.92.  For  the  stores 
with  sales  under  $40,000  it  was 
$34.90;  for  those  with  sales  of  $40,- 
000  to  $80,000  it  was  $42.00;  for 
those  with  sales  of  $80,000  to  $180,000 


it  was  $51.66,  and  for  those  with  sales 
of  $180,000  and  over  it  was  $49.95. 
That  is,  the  amounts  increase  with 
the  size  of  the  store  except  for  the 
last  group  of  stores — those  with 
annual  sales  of  $180,000  and  over. 
When  the  amounts  of  selling  expense 
are  expressed  in  terms  of  total  ex- 
pense per  stock  turnover,*  the  aver- 
age amount  for  all  stores  is  $22.24. 
For  those  stores  with  sales  under 
$40,000  it  is  $23.27;  for  those  with 
sales  of  $40,000  to  $80,000  it  is  $23.33  ; 
for  those  with  sales  of  $80,000  to 
$180,000  it  is  $27.19;  and  for  those 
with  sales  of  $180,000  and  over  it  is 
$18.50.  That  is,  the  amounts  for  the 
first  two  groups  are  essentially  con- 
stant. For  the  group  with  sales  of 
$80,000  to  $180,000,  the  average  is 
considerably  larger,  and  for  the  group 
with  sales  of  $180,000  and  over, 
smaller  than  that  for  any  other  single 
group.  The  size  of  the  amounts  for 
the  latter  group  of  stores  is  explained 
primarily  by  the  presence  of  some 
stores  with  large  sales  and  rapid  stock 
turns. 

When  the  different  groups  of  stores 
are  considered  according  to  the 
amounts  sold  per  full-time  sales- 
person, the  amounts  of  selling  expense 
per  $100  of  total  expense  irregularly 
decrease  as  the  amounts  sold  per  per- 
son increase.  The  decrease  is  some- 
what more  regular,  however,  when 
the  amounts  of  selling  expense  per 
$100  of  total  expense  are  shown  for 
each  stock  turnover. 

Table  57  is  instructive  because  of 

*  The  method  by  which  this  unit  is  com- 
puted is  explained  on  page  4,  item   20. 


105 


TABLE  57 

AMOUNT  OF  SELJ:.ING  EXPENSE  PER  $100  OF  TOTAL  EXPENSE  PER  STOCK  TURNOVER, 

FOR    STORES    CLASSIFIED    BY    SIZE   AND   BY    AMOUNT    OF    SALES 

PER    FULL-TIME    SALES-PERSON,    1919 


ClasEifisd 

Totia 

tiet  BUea 
(In  000'*) 


l>aU.tUie 

taTftQ-pcTBo 

(in  OOO'e) 


Selling  Expense  per  ClOO  of  Total  Expe: 


Graphic       j  Actual 
20  40  60  80  100  120 


Graphic 
0  20   40   60  60  100  120  140  160 


Hncer  S12 
<12  to  J16 
$16  to  S24 
{24  to  552 
£■52  !c  over 

(A 


$48. 92 

42,18 
60.52 
51.57 
49.26 
43.42 

54.90 


Doder  $40 


Vnder  '12 
J12  to  J16 
J16  to  t24 
524  to  552 
$52  &  over 


58.79 
32.81 
44.92 
27.16 
27.54 


42.00 


Under  {12 
$12  to  $16 
$16  to  $24 
$24  to  {52 
552  at  over 


42.07 
46.55 
59.06 
41.5S 

S5.se 


Total 
(Averege ) 


61.66 


5eo  to  tieo 


Cnder  $12 
$12  to  JlP 
$16  to  $24 
$24  to  $52 
552  &  over 


58.00 
58.52 
48.59 
60.65 
68.20 


Itodor  $12 

1 

$12  to  $16 

5 

$16  to  $24 

IS 

$24   to  $52 

14 

J52  t  ever 

10 

34.61 
48.29 
57.16 
60.55 
40.69 


103.3 
1CS.4 
100.7 


71.3 

79.5 
67.1 

91.6 
65.5 
65.9 


65.9 


86.0 
94.7 
79.8 
84.5 
72.3 


105.6 


118.6 
119.6 
98.9 
103.5 
119.0 


102.1 


70.7 
98.7 
116.8 
102.9 
85.2 


?;22.24 


24.81 
24.06 
25.79 
20.53 
15.61 


25.27 

27.71 
IS. 23 
S4.65 
15.98 

17.09 


■25.55 


28.05 
27.25 
21.70 
19. 6& 
18.62 


27.19 


50.55 
29.26 
26.88 
24.07 
20.79 


18.50 


15.84 
16.6S 
21.98 

19.45 
12.72 


100.0 

111.6 
106.2 
U6.0 
92.3 

€9.7 


104 


124.6 
82.0 

155.4 
71,9 

76.8 


104.9 


126.1 
122.5 
97.6 
88. P_ 
85.7 


122.5 


157.5 
lSl.6 
120.9 

10S.2' 
95.5 


74.9 

9e.e 

87.4 
57.2 


Average  $48.92 


Average  $22.24 


the  light  which  it  throws  on  the  over- 
head expense  in  stores  of  different 
size,  under  different  conditions  of 
sales  activities  per  salesman,  and 
different  rates  of  stock  turnover. 
Selling  expense  becomes  an  increasing 


proportion  of  total  expense  as  stores 
increase  in  size.  By  total  expense  is 
meant  the  entire  expense  of  operation. 
Moreover,  selling  expense  per  $100 
of  total  expense  per  stock  turnover 
becomes,  on  the  whole,  larger  as  stores 


106 


increase  in  size.  The  practical  sig- 
nificance to  the  merchant  of  these  and 
other  conclusions  to  which  one  is  led 
from  analyzing  Table  57  is  that  he 
may  expect  selling  expense  as  com- 
pared to  total  expense  to  become 
larger  as  he  increases  the  volume  of 
his  business,  and  may  expect  it  to 
become  smaller  for  a  given  amount 
of  business  as  he  increases  the  sales 
of  his  full-time  sales-people.  Both 
conditions  follow  when  selling  ex- 
penses are  expressed  as  a  part  of  total 
expense  alone  and  when  expressed  in 
the  same  way  per  stock  turnover. 

The  detail  in  Table  57  relates  to 
1919  for  269  stores.  When  the  analy- 
sis is  extended  so  as  to  cover  selling 
expense  of  the  same  group  of  stores, 
expressed  as  a  part  of  total  expense 
for  each  $1,000  sold  per  full-time 
sales-person,  the  relation  of  selling 
expense  to  total  expense,  for  stores  of 
different  size  and  with  different 
amounts  sold  per  person,  is  more 
definite.  The  selling  expense  of  stores 
so  classified  is  set  out  in  detail  in 
Table  58.  For  all  the  stores  treated 
as  a  unit,  the  amount  of  selling  ex- 
pense per  $100  of  total  expense  for 
every  $1,000  sold  per  full-time  sales- 
person was  $2.42.  For  the  stores  with 
sales  less  than  $40,000  it  was  $2.06; 
for  those  with  sales  of  $40,000  to 
$80,000  it  was  $2.53;  for  those  with 
sales  of  $80,000  to  $180,000  it  was 
$2.69 ;  and  for  those  with  sales  of 
$180,000  and  over  it  was  $2.16.  That 
is,  the  amounts  increase  with  store 
size,  for  stores  with  sales  less  than 
$180,000.  The  amounts  decrease  for 
the  stores  having  sales  in  excess  of 


this  amount.  It  should  be  remem- 
bered that  the  amounts  sold  per  full- 
time  sales-person  increase  with  the 
size  of  the  store.  This  increase,  how- 
ever, does  not  compensate  for  in- 
creased selling  expense  per  $100  of 
total  expense  until  the  stores  with 
annual  sales  of  $180,000  and  over  are 
encountered. 

When  the  stores  are  classified  by 
size  and  by  the  amounts  sold  per  full- 
time  person,  the  selling  expense  per 
$100  of  total  expense  for  each  $1,000 
sold  decreases  as  the  amounts  sold  per 
person  increase.  For  the  entire  group 
the  amounts  range  from  $4.14,  for 
those  with  sales  under  $12,000,  to 
$1.05  for  those  with  sales  of  $32,000 
and  over.  Similar  decreases  occur 
for  each  group  of  stores  when  classi- 
fied by  size.  These  are  shown  in 
graphic  form  in  Table  58. 

In  Table  58  two  comparisons  are 
established:  First,  the  relation  of 
selling  expense  to  total  expense  for 
stores  of  different  size  and  different 
salesmen's  activities,  and  second,  the 
relation  of  total  expense  per  $1,000 
sold  per  full-time  sales-person  for 
stores  of  the  same  size  with  different 
amounts  sold  per  person.  The  aver- 
ages shown  serve  as  standards  by 
which  merchants  may  measure  the 
amounts  of  their  selling  expense  and 
by  which  they  may  compare  their 
expenses  with  those  of  their  competi- 
tors differently  situated  and  operating 
under  different  conditions. 

Table  58,  however,  covers  the  year 
1919  only.  In  view  of  this  fact,  it  is 
instructive  from  the  same  viewpoint 
to  consider  a  group  of  identical  stores 


107 


TABLE  58 

AMOUNT  OF   SELLING   EXPENSE  PER  $100   OF    TOTAL   EXPENSE   PER   $1,000    OF   SALES 

PER  FULL-TIME  SALES-PERSON,  FOR  STORES  CLASSIFIED  BY  SIZE  AND  BY 

AMOUNT   OF  SALES   PER   FULL-TIME   SALES-PERSON,    1919 


Classified 

Total 
tlat  Sales 

Amount  of 
Saleo  per 
Full-time 
Sales-person 
(in  OOO'a) 

jhmber 

of 
Stores 

Selling  Expense  per  $100  of  Total  Expense 

Selling  Expense  per  $100  of  Total  Expense  per 
$1,000  of  Sales  per  Pull-tlme  Sales-peraon 

Amoioit 

c 

Par  Cent. 

Amount 
C 

Per  Cent. 

(in  OOO'a) 

Graphic                            ^^j^^i 
20      40      60      80   100   120 

SO     40 

Craphlo 
60     80  100   120   140   160  180 

Actual 

Total 
(Avorago) 

269 

$48.92 

100.0 

$2.42 

1 

100.0 

nnder  $12 
{12  to  {16 
$16  to  $24 
524   to   {32 
$32  t  over 

30 
56 

105 
44 
36 

42.18 
50.52 
51.57 
49.26 
43.42 

86.2 
103.5 
105.4 
100.7 

88.8 

4.14 

5.58 
2.71 
1.79 
1.05 

Total 
(Average) 

: 

147.9 
112.0 
74.0 
43.4 

j 
1 

Total 
(Average) 

31 

S4.S0 

71.3 

2.06 

85.1 

Onder  $12 
$12  to  {16 
$15   to   {24 
$24   t»  {32 
$32  i  over 

9 

4 
7 
7 
4 

38.79 
32.81 
44.92 

27.16 
27.34 

79.5 
67.1 
91.8 
55.5 

S5.9 

5.88 
2.26 
2.26 
0.95 
0.78 

160.3 
93.4 
93.4 
39.3 
32.2 

Oader  |40 

1 

■■■"■                     1 

1 

! 

Total 
(Average ) 

103 

42.00 

85.9 

2.53 

104.5 

i 

Onder  412 
$12  to  $16 
{16  to   {24 
$24  to   {32 
{32  1  over 

16 
34 

31 
9 
13 

42.07 
46.33 
39.06 
41.33 
35.33 

86.0 
94.7 
79.6 
84.5 
72.5 

4.19 
3.21 
2.07 
1.53 

0.83 

173.1 
132.6 
85.5 
63.2 
34.3 

J40  to  {80 

I 

^^^^^^^^ 

^~ 

1 

i 

Total 
(Average) 

92 

51.66 

105.6 

2.69 

111.2 

: 

Onder  $12 
$12  to  $16 
$16  to   $24 
$24  to  $32 
$32  i  over 

4 

15 
50 
14 

58.00 
58.52 
48.39 
50.55 
58.20 

118.6 
119.6 
98.9 
103.3 
119.0 

5.59 
4.33 
2.55 
1.85 
1.51 

" 

$80  to   {130 

; 

173.9 
105.4 
76.4 
62.4 

; 

; 

1 

i 

i 

Total 
(Average ) 

43 

49.95 

102.1 

2.16 

69.3 

1 

■ 

Under  $12 
5l2   to  $16 
$16  to  $24 
$24  to  432 
$32  1  over 

1 
3 
15 
14 
10 

34.61 
48.29 
57.16 
50.35 
40.69 

70.7 
98.7 
116.8 
102.9 
83.2 

3.31 
3.36 
2.99 
1.63 
0.97 

136.8 
138.8 
123.6 
75.6 
40.1 

{130  &  ever 

i 

— 

1 

Average  ^48.92 


Average  $2,42 


Pull  longth  not  shovm 


from  year  to  year,  classified  in  the 
same  manner.  This  is  done  in  Tables 
59  to  62,  inclusive. 

Table    59    shows    the    amoujits   of 
selling  expense  per  $100  of  total  ex- 


pense and  per  $100  of  total  expense 
per  $1,000  sold  per  full-time  sales- 
person for  stores  in  the  combined 
years,  while  Tables  60  to  62,  inclusive, 
give   corresponding   facts   for   1919, 


108 


TABLE  59 


AMOUNT   OF   SELLING   EXPENSE   PER   $100   OF   TOTAL  EXPENSE   PER  $1,000    OF   SALES 
PER  FULL-TIME   SALES-PERSON,  FOR  146   IDENTICAL  STORES   CLASSIFIED 
BY  SIZE  AND  BY  AMOUNT  OF  SALES  PER  FULL-TIME  SALES- 
PERSON, 1919,  1918,  AND  1914,  COMBINED 


AmouQt   of 
Sales  per 
Pull- time 
Stiee-peraon 
(Id  OOO'iI 

RuBbar 

of 
stores 

Sailing  Erpenaa  par  $100  of  Tot^  Bzpanoa 

Selling  Expense 
$1,000  or  Sales 

per  $100  of  Total  Expense  par 
per  l*uU-tljna  Sales-person 

Tot»l 
■at  :uiei 

per  Cent. 

Ajsount 

Per  Cent. 

<U  000' •) 

Orapblo                             1 

1  Actual 

20      40      60      80    100    120    140    160 

)      20      40      60 

Oraphlc 

DO    100    120    140    160    180   20< 

Actual 

Total 
(Average) 

438 

$50.23 

1 

lOO.O 

tJ.ll 

^^^^^^1 

ffndor  $12 
$12  to  $16 
$16  to   $24 
$24   to   $32 
$32  i  over 

151 

107 

lie 

39 
23 

51.08 
50.88 
51.81 
47.45 
43.11 

101.7 
101.3 
103.1 
94.5 
85.8 

5.44 

3.71 
2.70 
1.73 
1.16 

174.9 

Total 

(AverAgo ) 

. 

j 

1 

j 

37.3 

Totnl 
(Average) 

125 

41.58 

82.8 

4.00 

128.6 

Older  $12 
$12  to  $16 
$16  to   $24 
$24   to   $32 
$32  4  over 

71 
23 
17 
10 

4 

44.45 
36.80 
42.15 

34.95 
28.43 

1 

88. 5 
73.3 
83.9 
69.6 
56.6 

5.72 
2.69 
2.22 
1.27 
0.77 

1 

183.9 
B6.5 

(tadar  $40 

1 

! 

40.8 
24.3 

Total 
(Average ) 

163 

46.07 

91.7 

3.44 

Onder  $12 
$12  to  $16 
$16   to   $24 
$24   to  $32 
$32  i   ovof 

63 
48 
38 
7 
7 

50.34 
45.37 
41.63 
39,65 
35.72 

100.2 
90.3 
62.9 
78.9 
71.1 

5.04 
3.29 
2.27 
1.45 
0.84 

162.1 

$40  to  $80 

l^^^l^ 

73.0 

46.6 
27.0 

Total 
(Average) 

108 

50.83 

101.2 

3.07 

93.7 

USdor  $12 
$12  to  $16 
$16   to   $24 
$24   to   $32 
$32  4  over 

14 
31 
46 
12 
S 

52.04 
52.26 
50.63 
46.49 
52.09 

103.6 
104.0 
100.8 
92.6 
103.7 

5.13 
3.77 
2.67 
1.74 
1.13 

165.0 
121.2 
85.9 
55.9 
46.0 

tBO  ts  tlSO 

^^ 

Total 
(Average) 

42 

53.37 

106.3 

2.63 

84.6 

1 

UBder  $12 
$12  to  $16 
$16  to   $24 
$24  to   $32 

832  i  over 

3 
5 

17 
10 

7 

71.91 
58.82 
55.04 
49.24 

4i.oe 

143.2 
117.1 
109.6 
93.0 
83.3 

6.87 
4.33 
2.82 
1.77 
1.15 

229.9* 

140.3 
90.7 

tlSO  li  ovor 

! 



— 

37.0 

1918,  and  1914,  respectively.  By- 
consulting  Table  60  it  may  be  seen 
that  the  relationships  between  selling 
expense  and  total  expense,  expressed 
either  in  the  simple  form  or  in  terms 
of  $1,000  sold  per  full-time  sales- 
person closely  agree  with  the  figures 


in  Table  58  based  upon  a  somewhat 
larger  number  of  stores  for  the  same 
year.  Moreover,  the  same  tendencies 
that  are  found  in  Table  58  are  dupli- 
cated with  minor  differences  in  Table 
60. 

In  the  discussion,  page  36  above, 


109 


it  was  shoMTi  that  the  amounts  of 
selling  expense  per  $100  of  total 
expense  increased  between  1914  and 
1918,  and  1918  and  1919.  In  this 
case  154  identical  stores  were  used  for 
comparative  purposes.  In  the  tables 
now  under  discussion,  the  amount  in 
1918   is   slightly   less  than   in    1914, 


while  the  amount  for  1919  is  slightly 
in  excess  of  that  for  1918.  The  differ- 
ences, however,  are  small  and  the 
extent  of  agreement  with  the  facts 
shown  in  Table  5  significant.  The 
direction  of  the  change  from  year  to 
year  in  the  amounts  of  selling  expense 
per  $100  of  total  expense  and  per  $100 


TABLE  60 

AMOUNT   OF   SELLING  EXPENSE   PER   $100    OF   TOTAL  EXPENSE  PER  $1,000    OF   SAIjES 

PER  FULL-TIME  SALES-PERSON,  FOR  146  STORES  CLuVSSIFIED  BY  SIZE  AND 

BY  AMOUNT  OF  SALES  PER  FULL-TIME  SALES-PERSON,   1919 


Clas»lfl«4 

Amoimt  of 
SUlos  per 
tVll-tlna 
Sales-person 
(In  OOO's) 

Nunber 

of 
Stores 

Soiling  wcpcr.EC  per  ^100  of  Total  Expor-se 

Soiling  E:cponEe  per  ClOO  of  Total  Expense  per  $1,000 
of  Sales  per  Pull-tlme  Sales-person 

Het  Salsa 
(In  OOO's) 

Ajnount 

Per  Cent. 

For  Cent. 

Gri-phlc                       1 

1     Actual 

20      40      60      BO    100    120    140 

Aflicunt 

C 

Graphic                                     1 

1      Actual 

20      40     60     80  100   120  140   lEO   ISO  200 

Tctfl 
(Aver&Ee) 

I'^e 

;5C.90 

100.0 

$2.49 

: 

150.0 

Dnder  $12 
$12  to  $16 
$16  to  $24 
$24   to   $32 
$32  U  over 

15 
30 

ei 

21 

19 

45.39 
56.29 
53.40 
49.06 
43.62 

89.2 
110.6 
104.9 
96.4 
85.7 

4.66 
4.02 
2.84 
1.78 
1.18 

187.1 
161.4 
114.1 
71.S 

47.4 

Total 

Uvortge) 

"^^^T 

i 

: 

i 

i 

Tctal 
(/,verBC«) 

14 

38.06 

74.8 

2.41 

96.8 

1 

UBder  $12 

$12   to   $16 
$16  to   $24 
$24  to  $32 
$32  tc  over 

6 
X 
4 
2 
2 

36.12 
37.87 
56.67 
30.87 
28.76 

71.0 
74.4 
111.7 
60.6 
E6.5 

3.67 
2.83 
2.87 
1.16 
0.83 

147.4 
11S.7 
IIS.S 
46.« 
33.» 

i 
i 

i 
1 

Total 
(Average) 

54 

43.44 

es.3 

2.66 

■i«i^M«  '^' 

Ibder  tl2 
$12  to  $16 
$16  to   $24 
$24  to   $32 
$32  k  over 

e 

IS 

le 

4 

6 

46.30 
47.32 
39.49 
41.09 
36.98 

91.0 
93.0 
77.6 
80.7 

76.6 

4.63 
3.34 
2.12 
1.53 

0.90 

194.0 
134.1 
85.1 
61.4 
36.1 

$40  to  $eo 

j 

1 

Total 
(Average ) 

54 

52.37 

102.9 

2.66 

114.9 

Onder  $12 
$12  to  $16 
$16  to  $24 
tZ4  to  $32 
$32  k  over 

2 
11 
SO 

7 

4 

50.85 
64.79 
49.73 
47.04 

54.67 

99.9 
127.5 
97.7 
92.4 

107.4 

6.06 
4.67 
2.68 
1.77 
1.60 

204.0* 
1S7.6 
107.6 

$80  to  $180 

i 

«o.e 

Total 
(Averape ) 

24 

52.28 

102.7 

2.14 

es.e 

1 

1 

i 
i 

Hoc  k  CTcr 

Coder  $12 
$12  to  $16 
$16  to   $24 
$24  to  $32 
$32  &  over 

9 
8 

7 

58.61 
50.08 
42.08 

115.1 

ee.4 

82.7 

3.06 
1.60 
1.16 

129.7 

72.3 

4«.e 

1 

Averafio  $2*49 


*rull  lenjtlL  DOt  abon 


no 


of  total  expense  for  each  $1,000  of 
sales  per  full-time  sales-person,  for  the 
stores  when  classified  by  size  and  by 
the  amount  sold  per  person,  generally 
agrees  with  that  for  the  stores  treated 
as  a  whole.  It  is  unnecessary  in  this 
connection  to  point  out  the  differences 
in   detail  inasmuch  as  interest  now 


lies  chiefly  in  the  change  from  store- 
group  to  store-group  in  each  of  the 
years.  Sufficient  attention  possibly 
has  been  given  to  this  matter  in  the 
consideration  of  Table  58.  Tables 
59  to  62,  inclusive,  are  introduced 
largely  to  supplement  the  detail  of 
the  larger  group  of  stores  in  Table  58. 


TABLE  61 

AMOUNT   OF   SELLING   EXPENSE   PER   $100   OF  TOTAL   EXPENSE   PER  $1,000    OF   SALES 

PER  FULL-TIME  SjVLES-PERSON,  FOR  146  STORES  CLuVSSIFIED  BY  SIZE  AND 

BY  AMOUNT  OF  SALES  PER  FULL-TIME  SALES-PERSON,  1918 


Aaiouct  of 
Salee   per 
PuIl-tUne 
Salee-.p*sroon 
(In  OOO'e) 

Ntunber 

of 
Sfcoree 

Selling  expense  per  $100  of  Total  Sxpeaee 

Selling  Expense 
$1,000   of  Sale 

per  $100  of  Total  Expenee  per 
3  per  Pull-tlr.e  Salee-poraon 

Total 
■at  Salas 
(to  OOO's) 

Amount 

Per  Cent. 

Amount 

Per  Cent. 

Graphle                   1    4<.tyaj 
!)     20      40      60     80  100    120    140 

3      20       40 

Graphic 
60     60    100    120   140   160   180 

Actual 

Total 
(Average ) 

146 

$49.39 

100  .0 

$3.16 

100. 0 

Qnder  $12 
$12   to   $16 
$16   to   $24 
$24   to   $32 
$32  ft  over 

60 
42 
47 
14 
3 

49.33 
49.97 
50.77 
43.12 
38.24 

100.0 
Ifil.8 

U1S.8 
67.3 
77.4 

4.66 
3.73 
2.56 
1.58 
1.02 

153.8 
118.0 
81.0 
50.0 
32.3 

(Average ) 

! 

— 

Total 
(Average ) 

40 

41.79 

64.6 

3.53 

111.7 

Cader  $^^ 
$12   to  $16 
$16  to   $24 
$24  to  $32 
$32  *  over 

21 

7 

s 
s 

2 

46.44 

35.48 
41.58 
54.87 
27.54 

94.0 
71.8 
84.2 
70.6 
55.8 

5.33 
2.63 
2.21 
1.24 
0.69 

158.7 
83.2 
69.9 
39.2 
21.8 

Ttader  $40 

j 

^^M 

■■■■ 

I 

Total 
(Average  1 

61 

45.89 

92.9 

3.48 

110. 1 

Onder  $12 
$12   to  $16 
$16  to  $24 
$24  to  $32 
$32  k  over 

24 
20 
15 
2 

50.47 
44.64 
41.97 
24.33 

102.2 
90.4 

85.0 
49.3 

4.76 
3.29 
2.30 
0.36 

150.6 
104.1 
72.8 

27,2 

$40  to  $S0 

— 

i 

Total 
(Average ) 

32 

43.71 

1 

98.6 

2.86 

90.5 

Cbder  $12 
$12  to  $16 
$16  to  ^4 
$24   to  $32 
$32  Jc  over 

5 
11 
10 

S 

1 

50.19 
45.68 
53.48 
46.01 
41.25 

101.6 
92.5 

108.3 
93.2 
83.5 

4.47 

3.24 
2.66 
1.71 
1.14 

141.5 
102.5 
84.2 
54.1 
36.1 

i 

Total 
(Average) 

13 

53.1c. 

107.6 

2.96 

93.7 

' 

$1B0  &  over 

Older  $12 
$12  to  $16 
$16  to  $24 
$24  to  $32 
$32  &  over 

4 
7 
S 

59,60 
S1.83 
43.25 

120.7 
10  4'.  9 
87.6 

- 
4.69 
2,56 
1.57 

148.4 
81.0 
49.7 

• 

^^^^^^^^ 

i 

Average  $49.39 


Average  $3.16 


111 


TABLE  62 


AMOUNT   OF   SCLLING   EXPENSE   PER   $100   OF   TOTAL  EXPENSE   PER  $1,000    OF   SALES 

PER  FULL-TIME  SALES-PERSON,  FOR  146  STORES  CLu\SSIFIED  BY  SIZE  AND 

BY  AMOUNT  OF  SALES  PER  FULL-TIME  SALES-PERSON,   1914 


Ancunt  or 
Sales  per 

-  I^ill-tln* 

Salos-perBOB 

(in  ooo'o) 

Katbor 

of 
Stores 

Selling  Expense  per  ^00  of  Total  Expense 

Selllne  Eicponso  per  ClOO  or  Total  Eiponse  por 
$1,000  or.  Sales  per  Pull-tlT.e  Sales-person 

Tot«l 
let  Sales 

Ar.ount 

Per  Cent. 

Aniount 

Per  Cent. 

""Pl""                                1  Actual 
5      20      ^0      CO     eo   100  120  140  160 

Graplilo 
5      20      40      60      80  100   120   140   160 

Actual 

Totil 
(Average } 

146 

$50.18 

100.0 

J4.13 

100.0 

: 

Dadar  $12 
$12  to  $16 
$16  to  $24 
$24  to  $32 
$32  &  over 

66 
95 
20 

4 
1 

52.74 
48.77 

46.04 
42. S5 
20. IJ 

105. 1 
97.2 
91.7 
85.6 
40.1 

5.88 
3.47 
2.47 
1.5' 
0.53 

133.0 
78.5 
55.9 
35. S 

12.0 

^^^^ 

(Avorage ) 

' 



Total 
(Average) 

71 

42.12 

83.9 

4.68 

105.9 

Under  $12 
$12  to  $16 
$16  to  $24 
$24  to  $32 
$32  k  over 

45 

IS 
8 

S 

44.36 
37.54 
55. JO 
37.61 

88.4 
74.8 
70. S 
75.0 

6.17 
2.72 
1.90 
1.40 

139.6 
61. S 
43.0 

"Sl.T 

VaatT  $40 

^^^ 

1 

Total 
(AverBgo) 

46 

48.62 

96.9 

4.32 

i 

' 

Dndor  $12 
$12  to  $16 
$16  to  $24 
$24  to  $32 
$32  1  over 

31 
10 
5 

1 
1 

51.22 
44.20 
47, M 
46.49 
20.13 

102.1 
88.1 
94.3 
92.6 

40.1 

5.31 
S.22 
2.69 
1.63 
0.5J 

120.1 

$40  to  (eo 

60.9 

—■ 

12.0 

Totol 
(Average) 

22 

50.60 

100.8 

3.92 

88.7 

; 

Dndor  }12 
$12  to  $16 
$16  to  $24 
$24  to  $32 
$32  i  over 

7 
S 
6 

105.6 
97.3 
99.2 

5.47 
3.69 
2.59 

123.8 

ei.2 

(80  to  $180 

52.99 

^i^ 

1 

- 

^^^^^ 

Total 
(Average) 

S 

120.2 

4.69 

106.x 

GO. 33 

Dndor  $12 
$12  to  $16 
$16  to  $24 
$24  to  $32 
$32  k  over 

3 

1 
1 

14J.3 
114.2 
63.0 

6.87 
3.82 

165k* 
86.4 

: 

$180  &  over 

^^*'*'''' 

- 

Average  $50.18 


C. — Yearly  Amounts  of  Sellhig 
Expense  per  $100  of  Total  Net 
Sales  and  per  $100  of  Total 
Expense,  for  Stores  Classified 
hy  Size  and  hy  Size  of  City  in 
Which  Located*  1919. 

*  Population  figures  are  for  1920, 


In  Tables  10  to  14,  inclusive,  it  is 
shown  that  the  amounts  of  selling 
expense  per  $100  of  total  net  sales  for 
stores  of  a  given  size  are  higher  in 
large  than  in  small  cities.  For  the 
stores  having  annnal  sales  of  $40,000 
to    $80,000    in    the    respective    city- 


112 


groups,  the  amounts  in  1919,  as  shown 
in  Table  10,  are  $6.89  and  $8.66.  It 
is  now  desired  to  make  some  furtlier 
comparisons  of  selling  expense  for 
stores  with  a  given  amount  of  sales, 
but  with  different  location.  This  is 
done  in  Tables  63  to  66,  inclusive. 

In  Table  63,  103  stores  with  annual 
sales  of  $40,000  to  $80,000  in  1919 
are  classified  according  to  location 
and  the  amount  of  sales  per  full-time 
sales-person.  The  average  amount  of 
selling  expense  per  $100  of  total  net 
sales  for  the  89  stores  in  the  small 
cities  was  $7.34,  while  for  the  14 
stores  located  in  large  cities  it  was 
$8.46.     That  is,  it  cost  per  $100  of 


total  net  sales  $1.12  or  15  per  cent, 
more  to  sell  goods  in  stores  in  the 
large  than  in  stores  in  small  cities. 
Moreover,  the  stores  in  the  small  cities 
have  an  advantage  even  when  the 
amount  sold  per  salesman  remains  the 
same.  To  illustrate:  The  selling  ex- 
pense per  $100  of  total  net  sales  for 
the  29  stores  located  in  small  cities, 
with  an  average  size  of  $56,780,  and 
with  sales  per  sales-person  of  $12,000 
to  $16,000,  was  $8.48.  For  the  5 
stores  with  similar  characteristics, 
with  an  average  size  of  $62,953,  but 
located  in  the  larger  cities,  the  cor- 
responding amount  was  $9.33.  Too 
much  ought  not  to  be  made  of  these 


TABLE  63 

AMOUNT  OF  SELLING  EXPENSE  PER  $100  OF  TOTAL  NET  SALES  PER  STOCK  TURNOVER, 

FOR    STORES    WITH    SALES    OF    $40,000    TO    $80,000,    CLASSIFIED    BY    SIZE    OF 

CITY  AND  BY  AMOUNT  OF  SALES  PER  FULL-TIME  SALES-PERSON,  1919 


Selling  Expense  per  SIOO  of  Total  Net  Sale 


0  20   40   60  60  100  120  140 


Per  Cent, 


0  20  40  60  80  100  120  140  160  180  200 


Total 
{Average ) 


Under  $12 
$12  to  S16 
516  to  $24 
$24  to  $22 
$32  &  over 


(Ave 


Under  Sl2 
.•12  to  fl6 
Cl€  to  C24 
J24  to  532 
$32  &  ever 


(Av 


tal 
rage) 


Under  $12 
$12  to  $16 
$16  to  $24 
$24  to  $32 
t32  i  over 


$7.60 


9.04 
8.62 
6.58 
1.18 
6.06 


7.34 


9.41 
8.48 
6.51 


9.33 
7.27 
9.99 
6.21 


100.0 


120.6 
114.9 
87.7 
95.7 
67.6 


97.9 


126.6 
113.1 
86.8 


112.0 


83.5 
124.4 
06.9 


$3.41 


5.32 
4.10 
3.29 
2.99 
1.81 


4.32 


6.27 
4.99 
3.83 
3.12 


4.03 


3.91 
4.66 
2.94 
4.00 
3.88 


Average  C7.50 


Average  03.41 


100.0 


166.0 
120.2 
96.5 
87.7 
53.1 


126.7 


183.9 
146.3 
112.3 
91.5 
71.6 


114.7 
156.7 


117.3 
113.8 


113 


differences  "\vben  the  amounts  are 
based  upon  a  few  stores,  yet,  when 
they  are  preponderantly  one  way,  as 
they  are  in  the  table,  the  results 
shown  by  even  a  few  stores  become 
significant.  Within  each  city-group, 
the  amounts  of  selling  expense  per 
$100  of  total  net  sales  decrease  as  the 
amounts  sold  per  salesman  increase, 
the  continuity  of  the  decrease  being 
unbroken  for  the  stores  in  the  small 
cities  and,  in  spite  of  the  fewer  stores, 
interrupted  at  only  two  places  for 
the  stores  in  the  large  cities. 

In  the  analysis  of  selling  expense 
for  these  stores,  however,  use  may  be 
made  of  another  and  more  refined 
unit ;  that  is,  selling  expense  per  $100 
of  sales  per  turnover.  When  all  the 
stores,  taken  as  a  unit,  are  compared 
in  this  way,  those  in  the  small  cities 
which  had  an  advantage  when  selling 
expense  is  measured  in  sales  alone, 
are  now  at  a  disadvantage,  as  com- 
pared to  those  in  the  large  cities. 
Relatively,  the  amounts  of  selling 
expense  in  terms  of  sales  and  stock 
turnover  for  the  two  groups  stand  in 
the  relation  of  107  to  100,  the  actual 
amounts  being  $4.32  and  $4.03.  This 
means  that  rapidity  of  turnover  for 
the  stores  in  the  large  cities  more  than 
compensates  for  their  larger  selling 
expense  in  terms  of  sales.  Such  a 
condition  also  holds  for  three  of  the 
groups  of  stores  having  the  same 
amounts  sold  per  salesman,  but  with 
different  location.  In  two  groups  an 
inverse  condition  obtains.  Moreover, 
as  the  amounts  sold  per  sales-person 
increase,  the  decline  in  selling  ex- 
pense is  more  rapid  when  measured 


in  terms  of  sales  per  turnover  than 
when  expressed  in  sales  alone. 

The  practical  significance  of  the 
foregoing  condition  seems  to  be: 
First,  that  merchants  doing  a  given 
amount  of  business  have  lower 
amounts  of  selling  expense  in  terms 
of  sales  in  the  small,  than  in  the  large 
cities,  but  that  they  have  higher  ex- 
penses when  they  are  measured  in 
sales  per  turnover.  Second,  that  for 
a  given  amount  of  annual  sales,  stores 
located  in  small  cities  may  reduce 
the  selling  expense  per  $100  of  sales, 
and  per  $100  of  sales  per  stock  turn- 
over, respectively,  from  $9.41  to  $4.88, 
and  from  $6.27  to  $2.44  by  increasing 
annual  sales  per  salesman  from  an 
amount  less  than  $12,000  to  $32,000 
and  over. 

Table  64  is  similar  to  Table  63. 
The  same  stores  are  included  and  the 
method  of  grouping  them  is  identical. 
The  only  additional  feature  of  the 
table  is  that  the  unit  of  expense  is 
expressed  in  terms  of  sales  for  each 
$1,000  sold  per  full-time  sales-person. 
It  is  unnecessary  to  repeat  what  has 
been  said  concerning  the  comparative 
advantages,  with  respect  to  the  rela- 
tion of  selling  expense  to  sales,  of  the 
two  groups  of  stores  differently  lo- 
cated. When  the  amounts  of  selling 
expense  are  expressed  in  terms  of 
sales  for  each  $1,000  sold  per  full- 
time  sales-person,  the  stores  in  the 
small  cities  retain  their  advantage, 
but  one  less  marked  than  that  which 
characterizes  them  when  selling  ex- 
pense is  related  to  sales  alone. 

The  possibilities  of  reducing  the 
amounts  of  selling  expense  per  $100 


114 


TABLE  64 

AMOUNT  OP  SELLING  EXPENSE  PER  $100  OF  TOTAL  NET  SALES  PER  $1,000   OF  SALES 

PER    FULL-TIME    SALES-PERSON,    FOR    STORES    WITH    SALES    OF    $40,000 

TO  $80,000,  CL.VSSIFIED  BY  SIZE  OF  CITY  AND  BY  AMOUNT 

OF  SALES  PER  FULL-TIME  SALES-PERSON,   1919 


su« 

or 

Ctt7 

Amount  of 
SeloB  per 
PiU-ti™ 
Sftleo-porson 
(In  OOO'e) 

Number 

of 
Stores 

Selling  Expense  par  $100  of  Total 
net  Sales 

Selllne  Ebrpense  per  $100  of  Total  liet  Sale=  per  51,000 
of  Sales  per  Pull-tire  Sal-s-person 

Amount 

Per  Cent. 

Amount 

Par  Cent. 

(In  000'») 

^""""^                      |Aetu«l 
20      40      60      80    100    120   140 

3      20      40      60      80    100    1?0    140   160    180   200   220 

Total 
(Average) 

103 

47.50 

100.0 

%.45 

'• 

IM.O 

Undor  $12 
$12  to  $16 
$16  to   $24 
$24   to  $32 
$32  *  over 

16 
34 
31 
9 
13 

9.04 

a. 62 

6.59 
7.13 
5.06 

1L0.5 
114.9 
87.7 
95.7 
67.5 

0.90 
0.60 
0.3'. 
0.27 
0.12 

200.0 
133.3 
77.9 
60.0 
26.7 

1 

(iver&gttX 

^^M                                    * 

Total 
(Average) 

89 

7.34 

97.9 

0.45 

100.0 

Under  $12 
$12  to  $16 
$16  to  $24 
$24  to  $32 
$32  f<  over 

14 
29 
29 
6 

11 

9.41 

8. 48 
6.51 
5.62 
4.88 

125.5 
113.1 
86.3 
■74.9 
65. 1 

0.93 
O.09 
0.35 

o.r;u 
0.12 

206.7 
131.1 
77.9 
46. T 
26.7 

40 

^            i 

Total 
(Average ) 

14 

8.46 

112.8 

0.48 

106.7 

! 

Onder  $12 
$12  to  $16 
$16  to  $24 
$24  to  $32 
$32  4  over 

2 

5 
2 
3 
2 

6.26 
9.33 
7.27 
9.99 
6.21 

83.5 
124.4 

96.9 
133.2 

82.3 

0.66 
0.63 
0.35 
0.38 
0.14 

146./ 

ever 

'             ■■ 

of  total  net  sales  per  $1,000  sold  per 
full-time  sales-person  by  stimulating 
sales  per  salesman  are  shown  by 
amounts  in  the  part  of  the  table 
bearing   that  caption. 

The  effect  of  store  location  and  the 
amounts  of  goods  sold  per  full-time 
sales-person  on  selling  expense  may 
be  shown  also  by  expressing  selling 
expense  in  terms,  first  of  total  ex- 
pense, and  second  of  total  expense 
per  stock  turnover.  This  is  done  in 
Table  65,  which  includes  the  same 
stores  as  those  studied  in  Tables  63 
and  64. 

Out  of  each  $100  of  total  expense, 
selling  expense  constitutes  $42.58,  for 


the  stores  in  small  cities,  and  $39.30 
for  the  stores  in  the  large  cities. 
That  is,  selling  expense  in  relation  to 
total  operating  expense  is  high  in  the 
stores  in  the  small,  and  low  in  the 
stores  in  the  large  cities.  Relatively, 
however,  the  advantage  accruing  to 
the  stores  in  the  large  cities  is  less 
when  selling  expense  is  expressed  in 
relation  to  total  expense  alone  than 
when  given  in  terms  of  total  expense 
per  stock  turnover. 

When  the  stores  are  classified  by 
the  amount  sold  per  sales-person,  the 
amounts  of  selling  expense  per  $100 
of  total  expense  decrease  as  the 
amounts  so  sold  increase,  the  direction 


115 


TABLE  65 


AMOUNT  OF  SELLING  EXPENSE  PER  $100   OF   TOTAL  EXPENSE  PER  STOCK   TURNOVER, 

FOR  STORES  ^VITH  SALES  OF  $40,000  TO  $80,000,  CLASSIFIED  BY  SIZE  OF  CITY 

AND    BY    AMOUNT    OF    SALES    PER    FULL-TIME    SALES-PERSON,    1919 


Aaount  Qt 
bales  per 
Pull-tine 
SaJat-person 
(Is  OOO'd 

Ihnber 

of 
Store e 

eelUng  Expense  per  }100  of  Total  -jtoiso 

Selling  Ejcpense  per  tlCC  of  Total  txpeiiso 
per  Stock  ^omover 

or 

CltJ 

Ascont 

< 

Per  Cent. 

Anount 

c 

Per  Cent. 

(IB  OOC'l) 

Graphle                        Actual 
2C      40      60      80   100   120   140 

Oraplilo                         j  Actual 
20      40      60      80   100   120   140 

Total 
(ATorage) 

103 

$42.00 

100.0 

{23.53 

100.0 

aider  $12 
$12  to   $16 

$16  to  |24 
$24  to   $32 
$32  i  OTor 

16 
34 

31 
9 

15 

42.07 
46.33 
S9.06 
41.33 
33.38 

100.2 
110.3 
95.0 
98.4 
84.2 

28.05 
27.25 
21.70 
19.68 
18.62 

120.2 

116.8 
93.0 
84.4 
79.8 

Total 

(AverAgo) 

Total 
(Average) 

88 

42.38 

101.4 

25.05 

107.4 

Onder  $13 
$12  to  $16 
$16  to  $24 
C24  to  $32 
$32  i  over 

14 
29 
29 
6 
U 

43.68 
47.88 
89.97 
34.42 
■    36.04 

104.0 
114.0 
95.2 
82.0 
8S.S 

29.12 
28.16 
S3. 51 
19.12 
18.02 

124.8 
120.7 
100.8 
82.0 

I      II 

40 

i 

Totnl 
(Average) 

14 

39.30 

93.6 

18.71 

80.2 

: 

ttailer  $12 
$12  to  $16 
$16  to  tS4 
$24  to  $32 
$32  «c  over 

2 
6 
2 
3 
2 

29.78 
40.15 
31.78 
51.86 
52.41 

70.9 
95.5 
75.7 
123.5 
77.2 

18.61 
20.07 
9.63 
20.74 
20.26 

79,8 

ovor 

1 

— 

41.3 
88.9 
66.8 

Average  $42.00 


ytvorage  $23.^ 


and  consistency  of  change  being  more 
marked  for  the  stores  in  the  small 
than  for  those  in  the  large  cities.  It 
is  readily  seen  that  such  a  decrease 
should  occur  because,  for  a  given 
amount  of  business,  the  larger  the 
amount  sold  per  person,  the  fewer  are 
the  salesmen  which  are  needed  and 
the  less,  absolutely  and  relative  to  the 
total  expense,  is  the  selling  expense 
incurred. 

Rather  more  distinct  tendencies  in 
the  direction  of  change  in  selling 
expense  in  relation  to  total  expense 
for  this  group  of  stores  are  revealed 


when  the  amounts  are  expressed  per 
unit  of  stock  turnover.  Such  amounts 
are  found  in  the  right-hand  part  of 
Table  65.  The  stores  in  the  small 
cities  offer  better  means  for  compari- 
son because  the  number  involved  is 
larger.  For  the  stores  in  which  the 
amount  of  sales  per  full-time  sales- 
person was  less  than  $12,000,  the 
average  amount  of  selling  expense  per 
$100  of  total  expense  per  stock  turn- 
over was  $29.12.  For  those  with  sales 
of  $32,000  and  over,  it  was  $18.02. 
Between  these  limits,  the  amounts  de- 
crease as  the  amounts  sold  by  sales- 


116 


men  increase.  For  the  group  of  stores 
in  the  large  cities,  the  direction  of 
change  in  the  amounts  is  inconclusive. 
Another  method  of  stating  the 
amounts  of  selling  expense  in  these 
103  stores  classified  by  location  and 
amounts  sold  per  salesman  may  be 
used  to  advantage.  In  Table  66  the 
amounts  of  selling  expense  per  $100 
of  total  expense  for  each  $1,000  sold 
per  full-time  sales-person  are  shown 
for  the  stores  classified  as  in  Table  65. 
The  bases  of  classification  of  the  stores 
are  location  and  amounts  sold  per 
salesman.  The  amounts  of  selling  ex- 
pense in  terms  of  total  expense  alone 


for  the  stores  thus  classified  are  more 
fully  comparable  from  group  to  group 
when  they  are  put  on  a  $1,000  basis. 
Thus  expressed,  they  are  shown  in  the 
right-hand  column  of  Table  66. 

Stated  in  this  form,  the  amounts  for 
stores  in  the  small  cities  are  relatively 
high  and  for  those  in  the  large  cities, 
relatively  low.  That  is,  they  stand 
in  the  same  position  as  do  those  when 
the  unit  of  measurement  is  total  ex- 
pense alone.  Within  each  city-group 
they  decrease  as  the  sales  per  full- 
time  sales-person  increase,  the  abso- 
lute and  percentage  reductions  in  the 
small  and  large  city-groups  being,  re- 


TABLE  66 

AMOUNT   OF   SELLING  EXPENSE  PER   $100   OF   TOTAL  EXPENSE   PER   $1,000    OF   SALES 

PER   FULL-TIME   SALES-PERSON,   FOR   STORES   WITH   SALES   OF   $40,000    TO 

$80,000,    CLASSIFIED    BY    SIZE    OF    CITY    AND    BY    AMOUNT    OF 

SALES     PER     FULL-TIME     SALES-PERSON,      1919 


sic* 

of 
city 

Amount  of 
Sales  per 
Full-tlno 
Sales-person 
(In  000'«) 

Matibcr 

or 
Storee 

Selling  Expense  per  $100  of  Total  Expense 

Selling  Expem 

$1,000   of   Sa 

e  per  $100  of  Total  Expcnae  per 
es   per  Full-time  Salee-pereon 

Aaonnt 

Per  Cent. 

Amount 
( 

Per  Cent. 

(t»  OOO'e) 

^'•='^'^"'-                         1  Actual 
5     20     40     60     80  100  120  140 

)     20     40 

Graphic                              1       .   .     , 
1      Actual 

60     80  100   120  UO  160   180 

Toinl 
(Average) 

103 

J42.0P 

100.0 

J2.53 

100.0 

Under  Cl2 
;i2  to  S16 
tl6  to  $24 
$24  to  $32 
$32  it  over 

16 
54 
31 
9 
IS 

42.07 
46.  So 
J9.C6 
41.33 
35.38 

100.2 
110.3 
93.0 
98.4 
84.2 

4.19 
3.21 
2.07 
1.53 
0.63 

165.6 
126.9 
81.8 
60.5 
52.8 

(Avorags) 

"^ 

■                 [ 

Total 
(Average) 

89 

42.58 

101.4 

2.59 

102.4 

! 

Under  $12 
$12  to  $16 
$1£  to  $24 
J24  to  432 
$32  4  over 

14 
29 
29 
6 

U 

43.68 
^47.68 
39.97 
54.47 

36.04 

104.0 
114.0 
95.2 
62.0 
65.8 

4.31 

3.32 
2.13 
1.26 
0.86 

170.4 
131.2 
84.2 
49.8 

54.0 

Chdor 
40 

^^ 

; 

40  acd 
OTor 

Total 
(Average) 

14 

39.30 

93.6 

2.23 

88.1 

1 

.; 

Ondor  $12 
$12  to  $16 
$16  to  $24 
$24   to   $32 
$32  k  over 

2 
S 

2 
3 
2 

29.78 
40,13 
31.78 
51.86 
32.41 

70.9 
96.5 
75.7 
123.5 
77.2 

3.14 
2. 73 
1.52 
1.96 
0.71 

107.9 
60.1 

77. S 
28.1 

-» 

Avcra{;e  $42 .00 

117 

Average  $2.53 

spectively,  $3.45  or  80  per  cent,  and 
$2.43  or  77  per  cent. 

D. — Summarxj. 

(1).  The  amounts  of  selling  ex- 
pense per  $100  of  total  net 
sales  for  each  $1,000  sold  per 
full-time  sales-person,  and  per 
$100  of  total  expense  for  each 
$1,000  sold  per  full-time  sales- 
person decreased  between 
1914  and  1918,  and  1918  and 
1919.  This  condition  holds 
for  all  stores  and  also  for 
stores  classified  by  size  and 
by  amount  of  sales  per  full- 
time  sales-person. 

(2).  For  stores  of  a  given  size, 
the  amounts  of  selling  ex- 
pense in  terras  of  sales,  of 
sales  per  stock  turnover,  and 
of  sales  per  $1,000  sold  per 
full-time  sales-person,  de- 
crease as  the  amounts  sold  by 
each  sales -person  increase. 
This  condition  holds  for  stores 
in  both  small  and  large  cities. 

(3).  For  stores  with  a  given 
amount  of  sales  per  full-time 
sales-person,  selling  expenses 
in  terms  of  sales  alone,  in 
terms  of  sales  combined  with 
stock  turnover,  or  in  terms  of 
the  amount  sold  per  full-time 
sales-person,  increase  as  the 
size  of  the  store  increases. 

(4).  For  stores  of  a  given  size,  the 
proportions  of  total  expense, 
attributable  to  selling  de- 
crease as  the  amount  sold  i3er 
salesman   increases.     This  is 


true  when  selling  expense  is 
measured  in  terms  of  total 
expense  alone,  and  when  com- 
bined with  stock  turnover  or 
$1,000  of  sales  per  full-time 
sales-person. 

(5).  For  stores  with  a  given 
amount  of  sales  per  sales- 
person, the  amounts  of  selling 
expense  in  terms  of  total  ex- 
pense, in  either  the  single  or 
combined  units,  increase  with 
the  size  of  the  stores. 

(6).  For  stores  of  a  given  size,  the 
average  amount  of  selling  ex- 
pense in  terms  of  sales  per 
stock  turnover  is  higher  for 
stores  in  small  than  for  those 
in  large  cities.  The  amount  in 
terms  of  sales  per  full-time 
sales-person  also  is  higher  for 
the  stores  located  in  large 
cities. 

(7).  For  stores  of  a  given  size,  the 
average  amount  of  selling  ex- 
pense, in  terms  of  total  ex- 
pense combined  with  either 
stock  turnover  or  the  amount 
sold  per  sales-person,  is 
higher  for  stores  in  small 
than  for  those  in  large  cities. 

(2) — YEARLY  AMOUNTS  OP  SELLING 
EXPENSE  IN  RELATION  TO  THE 
METHODS  BY  WHICH  SALESMEN 
ARE  PAID. 

In  the  search  for  an  explanation  of 
the  conditions  which  account  for  high 
or  low  selling  expense,  an  analysis 
has  been  made  of  the  expenditures 


118 


TABLE  67 


AMOUNT  OF  SELLING  EXPENSE  PER  $100  OF  TOTAL  NET  SALES  PER  STOCK  TURNOVER, 

FOE  STORES  CLASSIFIED  BY  SIZE  AND  BY   METHOD   OF  PAYING 

REGULAR     SALESMEN,     1919 


CUoslflod 

Tot»l 
Kst  Ssloa 

Ksthod 

of 

COE^onflatloD 

Number 

of 
BtorOB 

Soiling  Expenao  per  JlOO  of  Total 
IJet  Saloa 

Selling  Bipense  per  tlOO  of  Total  Hot 
Sales  per  Stock  TxuTiover 

Amount 

Per  Cent. 

Anoxmt 

F«r  Cent. 

°^"^"°                     1   Actual 
D      20      40      60      80   100   120 

■^"P"'                         1  Actual 
5     20      40     60     80   100   120   140 

Total 
(Average) 

254 

♦9.75 

100.0 

t4.64 

100.0 

Total 
Uv«rag«) 

Straight  Salary 
Salary  4  Connlsalon 

197 
57 

9.21 
10.79 

94.5 
110.7 

4.61 

4.50 

99.4 

^^^^^1 

i 

i 

Total 
(AvoraRO ) 

za 

6.09 

62.5 

4.06 

87.5 

; 

Under  *40 

Stralgtt  Ealary 
Salary  4   ConmlsBlon 

25 
5 

5,85 
7.00 

60.0 
71.8 

1.90 
4.67 

84.1 

100.6 

> 

Total 
(Average) 

97 

7.55 

77.4 

4.19 

1 

t40   to  (80 

Straight  Ealary 
Salary  &  Comnlaslon 

85 
12 

7.65 
6.95 

78.5 
71.3 

4.25 
3.86 

91.6 

! 

1 

• 

Total 
(Average ) 

89 

10.03 

102.9 

5.28 

113.8 

Sao  to  {ISO 

Straight  Salary 
Salary  4  Coranlsalon 

65 
24 

9.55 
11.24 

97.9 
115. J 

4.78 
6.24 

103.0 
134.5 

; 

Total 
(Average) 

40 

10.66 

109. S 

5.95 

65.1 

; 

$130  &  o7or 

Straight  Salary 
Salary  &  ComnilBBlon 

24 

15 

10. 2  J 
11.12 

104.9 
114.1 

4.09 
S.S9 

68.1 
77.4 

•• 

Average  (9.75 


Average  (4.61 


for  this  purpose  in  1919  for  254  stores 
classified  by  size  and  by  the  methods 
by  which  salesmen  are  paid.  Two 
methods  of  compensation  are  distin- 
guished for  purposes  of  study.  The 
stores  are  classified,  first,  into  those 
which  use  only  straight  salaries  in 
contrast  with  those  in  which  salaries 
and  commissions  are  employed;  and 
second,  into  those  which  pay  or  do 
not  pay  some  form  of  bonus.  The 
tables  bearing  upon  each  of  these 
methods  of  payment  contain  the  re- 
sults of  our  findings  on  the  relative 
size  of  the  amounts  of  selling  expense 
expressed  in  different  units. 


A. — Yearly  Amounts  of  Selling  Ex- 
pense per  $100  of  Total  Net 
Sales  and  per  $100  of  Total  Ex- 
pense, for  Stores  Classified  by 
Size,  1919. 

The  total  amount  of  wages  and  sal- 
aries properly  chargeable  to  selling, 
on  the  average,  constituted  in  1919, 
63  per  cent,  of  total  selling  expense.* 
Accordingly,  in  the  comparisons  im- 
mediately following,  any  effect  which 
the  methods  of  compensation  might 
have  on  total  selling  expense  would 
be  restricted  by  this  fact.     In  spite 

*  Table  178,  p.  259. 


119 


TABLE  eS 


AMOUXT  OF  SELLING  EXPENSE  PER  $100  OF  TOTAL  NET  SALES  PER  $1,000   OF  SALES 

PER    FLTLL-TIME    SALES-PERSON,    FOR    STORES    CLASSIFIED    BY    SIZE    AND 

BY    METHOD   OF   PAYING    REGULAR   SALESMEN,    1919 


Method 

of 

CosporJatlon 

Smut  or 

of 
Storaa 

sailing  anDsnio   per  SlCO  of 
Total  Net  ialoa 

Soiling  Expense  per  $100  of  Total  Set  Saloa  per 
Jl.OOC   of  Salea   per  Pull-tUao  Salea-porson 

Total 

Aaount 

Per  Cent. 

Aaount 

C 

Per  Cent, 

(In  OOO't) 

*-"!*l''                          Actual 

J      20      40      60     80   100    120 

'^^^'^o                  1    Actual 

20     40      CO     80   100  120 

Total 
(Avtrr.cs) 

354 

«9.-75 

ico.o 

JO. 48 

'■ 

100.0 

1 

Tt^til 
(r.v:r»g» ) 

Straight  Salary 
Salary  fc  ComiMlon 

197 
57 

9.21 
10.79 

94.5 

110.7 

0.45 
0.53 

110.4 

i 

i 

i 

i 

Total 
(Averago) 

28 

6.09 

C2.5 

0.34 

70.8 

Ur.der  $40 

Straight  Salary 
Sfilary  fc  ConTT^aslon 

23 

5 

5.65 
7.00 

CO.O 
71. S 

0.J5 
0.28 

72.9 
58.3 

Total 
(AvcrsEo) 

97 

7.55 

77.4 

0.46 

95.8 

1 

Straight  Salary 
Salary  fc  Corr^aalon 

85 
12 

7.65 
6.95 

73.5 
71. J 

0.46 
0.45 

95.3 
93.7 

1 

i 

Total 
(Average) 

89 

10.03 

102.9 

0.52 

103.3 

StrolBht  Salcry 
Salary  i  Corr-.laslon 

65 
24 

9.55 
11.24 

97.9 

115.3 

0.50 
0.55 

104.2 
114.6 

$80  to  OlSO 

Total 
(Average) 

40 

10.66 

109.3 

0.45 

93.7 

i 

1 

Straight  Salary 
Salory  i  OorTilaslon 

24 
16 

10.23 
11.12 

104.9 
114.1 

0.39 
0.52 

81.2 
106.3 

Average  $9.75 

Average  Jo. 43 

of  this,  however,  it  has  been  thought 
worth-while  to  make  such  compari- 
sons at  this  place  and  to  reserve  for 
a  later  section  the  discussion  of  the 
relation  of  wages  and  salaries  to  total 
net  sales  and  to  total  expense  for 
stores  using  different  methods  of 
compensating  their  employees. 

In  Tables  67  and  68  the  amounts 
of  selling  expense  in  terms  of  net 
sales,  in  terms  of  net  sales  per  stock 
turnover,  and  in  terms  of  net  sales 
for  each  $1,000  sold  per  full-time 
sales-person,  for  stores  classified  by 
size  and  by  method  of  compensating 
regular  salesmen,  are  set  out  in  detail. 
Without    reviewing   the   amounts   in 


these  tables,  item  by  item,  it  may  be 
of  interest  briefly  to  summarize  them 
and  to  generalize  upon  the  results 
secured. 

In  Table  67,  for  three  of  the  four 
groups  of  stores,  when  classified  by 
size,  the  amounts  of  selling  expense 
per  $100  of  total  net  sales  are  lower 
for  stores  which  pa>"  their  employees 
on  a  straight  salary  basis.*  The  dif- 
ferences in  amounts,  moreover,  can 
hardly  be  attributed  to  the  size  of 
the  stores  involved.  It  will  be  re- 
called, of  course,  that  the  amounts  of 

*  The  averages  which  are  low  are  under- 
lined in  this  and  the  following  tables  re- 
lating to  this  subject. 


120 


TABLE  69 


AMOUNT  OF  SELLING  EXPENSE  PER  $100  OF  TOTAL  EXPENSE  PER  STOCK  TURNOVER, 

FOR  STORES  CLASSIFIED  BY  SIZE  AND  BY  METHOD  OF  PAYING 

REGULAR   SALESMEN,    1919 


Metbod 

of 

CoBpenaatlon 

Ihanber 

of 
Stores 

Selling  Expense  per  ClOO  of  Total  Expense 

Selllne 

Expense  per  ClOO  of  Totol  txponso 
per  Stock  Turnover 

Total 
Ket  Sales 
(In  000' 6) 

AjTTOunt 

Per  Cent, 

Amount 

Per  Cent. 

"'•"P""                             Actual 
3      20      40      60     80   100   120 

"^»f"^«                             Actual 
J      20      40      60     80   100   120   liO 

Total 
(Average ) 

254 

t47.47 

100.0 

$22.60 

i 

100.0 

i 

Total 
(Average ) 

Straight  Sadarj 
Salary  4   CoTWOlBslon 

197 

57 

45.89 
50.27 

66. 7 
105.9 

22.95 
20.95 

101.5 
92.7 

; 

1 

i 

Total 
(Average) 

28 

56.26 

76.4 

24.17 

106.9 

! 

Under  $40 

Straight  Saaary 
Salary  &  Coimnlsslon 

25 
S 

55.61 
58.56 

75.0 
81.2 

2S.7^ 
25.71 

105.0 
113.8 

; 

i 

Total 
(Average) 

97 

42.50 

89.1 

23.60 

104.0 

[ 

$40  to  tao 

Stralglit  Salary 
Salary  &  Coiranlsaion 

85 
12 

42.77 
59,2^ 

90.1 
82.7 

23.76 
21.80 

105.1 
96.5 

i 
i 

i 

Total 
(Average) 

89 

108.4 

27.08 

119.8 

ieo  to  tiso 

Straight  Sajary 
Salary  &  CoBBnlaslon 

65 
24 

106.5 
115.1 

25.24 
29.85 

111.7 
132.0 

i 

Total 
(Average) 

40 

99.1 

17.42 

77.1 

! 

$180  &  over 

Straight  Salary 
Salary  k  ComlMion 

24 
16 

95,5 
105.5 

17.72 

18. la 

78.4 
71.5 

50.06 

Ave]-age   t47.47 

Average  $22.60 

selling  expense  per  $100  of  total  net 
sales  increase  as  stores  increase  in 
size.  But  the  differences  in  the  size 
of  the  stores  in  these  cases  are  not 
sufficient  to  explain  the  differences  in 
the  amounts. 

When  the  amounts  of  selling  ex- 
pense per  $100  of  total  net  sales  for 
these  stores  are  found  per  stock  turn- 
over, in  two  of  the  groups  the  amounts 
are  lower  for  stores  using  straight  sal- 
aries, and  in  two  they  are  lower  for 
stores  using  salaries  and  commissions. 

When  the  amounts  of  selling  ex- 
pense per  $100  of  total  net  sales  are 
expressed  in  terms  of  each  $1,000  sold 


per  full-time  sales-person,  as  in 
Table  68,  two  of  the  groups  of  stores 
show  smaller  selling  expense  where 
straight  salaries  predominate  and 
two,  smaller  selling  expense  where 
salaries  and  commissions  are  used. 
The  results  of  this  comparison  are 
negative  as  to  any  effect  which  differ- 
ent methods  of  compensating  em- 
ployees may  have  on  selling  expense. 
In  Tables  69  and  70  the  amounts  of 
selling  expense,  for  stores  classified  as 
in  Tables  67  and  68,  are  shown  in 
terms  of  total  expense  alone,  in  rela- 
tion to  total  expense  per  stock  turn- 
over, and  in  relation  to  total  expense 


121 


TABLE  70 


AMOUNT   OF   SELLING   EXPENSE   PER   $100   OF   TOTAL   EXPENSE   PER   $1,000    OF   SALES 

PER  FULL-TIME  SALES-PERSON,  FOR  STORES  CLASSIFIED  BY  SIZE  AND  BY 

METHOD    OF    PAYING    REGULAR    SALESMEN,    1919 


Iot«l 
Hat  £*!«• 

UethoO 

or 

Ccxpeneatlon 

Itur.ter 

of 
Etorea 

Selling  &cpenae  per  $100  of  Total 

Expense 

Selling  Expeiieo  per  ClOO  ci    total  Expense  per 
$1,000  of  Sales  per  P-ill-tJne  Salee-poreon 

Ajncnjnt 

fer  Cer.t. 

An  cunt 

Per  Cent. 

(in  O0O'«> 

Oraf.hlc 

D     £0      40      60      80    100   J20 

Actual 

Grapiilc                       1 

Actr.al 
D     20     40     60     00  100   ICO 

Tott.1 
(AverBge) 

254 

$47.47 

loc.o 

$2.34 

100.0 

i 

To-.ul 

Strale^t  Salary 
SalLry  fc  Ccmnlcslcii 

197 

57 

45.89 
50.27 

0C.7 
ICG. 9 

2.27 
2.46 

97.0 
104.7 

(Average ) 

Tetil 
(AveroEe) 

SB 

56.26 

76.4 

2.04 

87,2 

j 

■ 

TJD£er  $40 

Etmlsbt  Salary 
Salary  &  Cornnloslon 

2S 

is.ei 

38. S6 

75.0 
81.2 

S.IS 
1.53 

91.9 
65.4 

1 

Tctal 
(Avcrtce) 

97 

42.50 

69.1 

2.59 

110.7 

$40  to  $80 

Straight  Salary 
Salary  fc  ConnlESIon 

65 
12 

42.77 
39.24 

90.1 
82.7 

£.60 
2.52 

111.1 

107.7 

Total 
(Average) 

E9 

sa.46 

ioe.4 

2.65 

i 

{80  to  tieo 

Stralgjit  Salary 
Salary  &  CoTwilealon 

•es 

24 

50.48 
5S.£9 

loe.o 

113.1 

2.65 
2.64 

115.2 
112.8 

1 

Total 
(Avorage) 

40 

47.03 

99.1 

1.99 

Jieo  i  o«r 

Stralfjit  Salsrj 
Salary  t  CoiwilBslon 

24 
16 

44.31 

50. C6 

93.3 
105.5 

1.68 
2.35 

100.4 



; 

£M0r^9  $47.47 


Avorago  ^.34 


for  each  $1,000  sold  per  full-time 
sales-person.  Summarizing  these 
tables  briefly,  it  may  be  observed  that, 
in  terms  of  total  expense,  the  amounts 
of  selling  expense  are  lower  for  stores 
using  straight  salaries  in  three  of  the 
groups  classified  by  size.  In  one 
group  an  inverse  condition  obtains. 
When  the  amounts  of  selling  expense 
per  $100  of  total  expense  per  stock 
turnover  are  determined,  two  of  the 
groups  of  stores  show  the  amounts  to 
be  less  when  straight  salaries  are  used 
and  two  groups  show  them  to  be  less 
when  salaries  and  commissions  obtain. 
That  is,  in  terms  of  this  unit  alone 
the  results  are  inconclusive. 


When  the  amounts  of  selling  ex- 
pense per  $100  of  total  expense  are 
shown  for  each  $1,000  sold  per  full- 
time  sales-person,  as  in  Table  70, 
three  of  the  groups  of  stores  show 
the  amounts  to  be  less  w-hen  salaries 
and  commissions  are  employed  and 
one  where  straight  salaries  predom- 
inate. 

From  the  above  tables  the  evidence 
of  a  definite  relation  between  the 
methods  of  compensating  employees 
and  the  amounts  of  selling  exjiense 
seems  confllicting.  However,  this  is  not 
the  case,  as  is  clear  from  the  following 
summary,  when  all  of  the  group  aver- 


122 


ages  are  considered  together:*  First, 
the  amounts  of  selling  expense  per 
$100  of  total  net  sales  and  per  $100 
of  total  expense  are  lower  where 
straight  salaries  are  used  in  six  out  of 
the  eight  cases.  In  two  instances  the 
amounts  are  lower  where  salaries  and 
commissions  predominate.  Second,  in 
four  cases  out  of  eight  they  are  lower 
for  stores  using  straight  salaries  when 
the  amounts  are  expressed  in  terms  of 
sales  per  turnover  and  total  expense 
per  turnover,  while  in  three  of  the 

*  The  averages  which  are  low  are  under- 
BCored  in  Tables  67  to  70,  inclusive. 


eight  cases  they  are  lower  for  straight 
salaries  when  the  amounts  are  ex- 
pressed in  terms  of  sales,  and  in  terms 
of  total  expense  per  $1,000  of  sales 
per  full-time  sales-person.  Obviously, 
the  connection  between  the  method  of 
paying  salesmen  and  the  amounts  of 
selling  expense  is  best  measured  in 
terms  of  sales  or  total  expense.  The 
conditions  affecting  turnover  and  the 
amounts  sold  per  sales-person  are  so 
varied  as  to  make  comparisons  in 
such  units  of  comparatively  little  sig- 
nificance in  this  connection.  The 
amounts  are  expressed  in  these  more 


TABLE  71 

AMOUNT  OF  SELLING  EXPENSE  PER  $100  OF  TOTAL  NET  SALES  PER  STOCK  TURNOVER, 
FOR  STORES  PAYING  OR  NOT  PAYING  A  BONUS  TO  REGULAR  SALES- 
MEN,   CLASSIFIED    BY    SIZE    OF    STORE,    1919 


■sthod 

of 

Coiqpeiisatloo 

Humbar 

of 
Stores 

Selling  Expense  per  ♦lOO  of 
Total  Het  Sales 

SellLng  Expense  per  ♦lOO  of  Total  Net  Sales 
per  Stock  Tiimover 

Total 
Hst  Salso 

Amount 

Per  Cent. 

Amount 

Per  Cent. 

(In  OOO'b) 

Graphic                 1 

1    Actual 

5      20      40      60      80  100   120 

Graphic                         1 

1    Actual 

3      20      40      60      80   100    120   140 

Total 
(Average) 

254 

ia.75 

1 

100.0 

t4.64 

100.0 

Total 
(Average) 

With  Bonus 
Without  Bonus 

60 
194 

10.96 
9.15 

112,4 
95.6 

4.77 
4.35 

142.8 
93.7 

i 

: 

i 

Total 
(Average ) 

28 

6.09 

62.5 

4.06 

87.5 

: 

With  Bonus 
Vlthout  Bonus 

S 
23 

6.05 
6,10 

62.1 

62.6 

4.03 
4.07 

86.9 

; 

Total 
(Average) 

97 

7.55 

77.4 

4.19 

90.3 

: 

"    i 

♦40   to   $80 

With  Bonus 
Without  Bonus 

14 
83 

8.28 
7^i2 

84.9 
76.1 

4.14 
4.3S 

89.2 
94.0 

1 

lotal 
(Avsrags ) 

89 

lO.flS 

102,9 

5.28 

U5.8 

Seo  to  *ieo 

With  Bonus 
Without  Boons 

28 
63 

11.01 

9.62 

112.9 
98.7 

S.79 
.SjOS 

124.8 
109.1 

i 

Total 
(Average) 

40 

10.66 

ibg.s 

5,95 

85.1 

i 

♦180  k  over 

With  Bonos 
Without  Bonos 

IS 
25 

11.59 

10.05 

116.6 
102.9 

4,58 
5,58 

94.4 
77.2 

! 

'  ; 

; 

Avwa^e  ♦9.7S 


Average  ♦4,64 


123 


refined  units  largely  because  of  the 
value  which  they  may  have  to  the  in- 
dividual merchant  rather  than  be- 
cause of  any  value  which  attaches  to 
them  for  purposes  of  generalization, 
A  distinction  which  has  been  made  be- 
fore between  the  actual  amounts  of 
expenditure  and  the  tendencies  for 
these  amounts  to  increase  or  decrease 
should  be  kept  in  mind. 

The  amounts  of  selling  expense  may 
also  be  compared  for  stores  of  differ- 
ent size  which  pay  or  do  not  pay  their 
employees  bonuses.  Comparisons  from 
this  viewpoint  for  254  stores  are  con- 
tained in  Tables  71  to  74,  inclusive. 


Table  71  shows  the  amounts  of  sell- 
ing expense  per  $100  of  total  net  sales 
and  per  unit  of  sales  per  stock  turn- 
over for  stores  classified  by  size  and 
by  the  use  or  non-use  of  bonuses.  In 
three  of  the  groups  of  stores,  classified 
by  size,  the  amounts  of  selling  expense 
are  lower  where  bonuses  are  not 
used.*  In  one  instance  an  inverse 
condition  holds.  When  the  amounts 
of  selling  expense  are  shown  per  $100 
of  sales  for  each  stock  turnover,  two 
groups  of  the  stores  have  lower 
amounts    of    selling    expense    where 

*  The  averages  which  are  lower  are  under- 
scored in  Tables  71  to  74,  inclusive. 


TABLE  72 

AMOUNT  OF   SELLING  EXPENSE  PER   $100   OF  TOTAL   NET   SALES   AND   PER   $1,000   OF 

SALES  PER  FULL-TIME  SALES-PERSON,  FOR  STORES  PAYING  OR  NOT  PAYING  A 

BONUS  TO  REGULAR  SALESMEN,  CLASSIFIED  BY  SIZE  OF  STORE,  1919 


Method 

of 

Conpen3fttlon 

Nunbcr 

of 
Stores 

Selling  Expense  per  tlOO  of 
Total  Bet  Sales 

Selling  atpcnsE   per  tlOO  of   Total  Net  iales  per 
Jl.OOO  of  Sales  per  Pull-tlme  Sales-person 

ClnsolflolJ 
Totnl 

Anount 

Per* Cent, 

Amount 

Per  Cent. 

(In  000'«) 

Graphic 

Actual 
3     20      40      60     80   100   120 

Graphic                     1 

1  Actual 
3      20      40      60      80   100   120 

Total 
(AvorQgo) 

254 

J9.75 

100.0 

$0.48 

i 

100.0 

Total 

With  Bonu» 
nitbout  BonuB 

60 
194 

10. ae 

9.13 

6.09 

112.4 
93.6 

0.48 
0.47 

100.0 
97.9 

(Averkgo) 

1 

i 

! 

Tot»l 
(Average) 

28 

62.3 

0.34 

70,8 

UzAer  UO 

nlth  Bonus 
Without  Bonuo 

J 
25 

6. OS 
6.10 

62.1 
62.6 

0.34 
0.34 

70.3 
70. e 

Total 
(Avorttgo) 

97 

7.55 

77.4 

0.46 

96.8 

#40  to  880 

With  BonuB 
Bithout  Bomu 

14 

83 

8.23 
7.42 

84.9 
76.1 

0.47 

0.46 

1 

t 
i 

95.8 

Total 
(Avortgo ) 

68 

10.03 

102.9 

112.9 
98.7 

0.52 

0.55 
0,50 

ioa.3 

tlth  BonuB 
TJlthout  Oorma 

6» 

11.01 
9.62 

114.6 

tSO   to  tLdO 

1 

1 

Total 
(Averag* ) 

40 

10.66 

109.3 

0.45 

Slth  BoMUB 
BlttoMt  BonuB 

IS 
26 

11.39 
10.03 

116.8 
X02.9 

0.45 
0.45 

eiaO  *  OTor 

AvoriAge  Zo.7i 

Average  $0*4B 

124 


TABLE  73 


AMOUNT  OF  SELUNG  EXPENSE  PER  $100   OP   TOTAL   EXPENSE   PER   STOCK   TURNOVER, 

FOR  STORES  PAYING  OR  NOT  PAYING  A  BONUS  TO  REGULAR  SALESMEN, 

CLASSIFIED    BY    SIZE    OF    STORE,    1919 


Clajtlrled 

Total 
tl»t  Sale* 

Method 

of 

Oompanflatlon 

Nunbor 

cf 
Stores 

Selling  Expanse 

per  $100  of  Total 

Expence 

Selling  Expense   por   $100   of   Total 
per  Stock  Turnover 

Expense 

Aaoo\jnt 

< 

Per  Cont. 

Azaount 

Per  Cent. 

(in  OOO'o) 

)      20      40 

Graphlo 

60      80    100   120 

Actual 

Grapbls 
3      20      40      60      80    100   120 

Actual 

Total 
(ATsrttRe ) 

254 

♦47.47 

100.0 

$22.60 

100.0 

1 

1 

Total 
(Avorago ) 

WltH  Bonos 
Hltbout  Bonu£ 

60 
194 

60.06 
45.98 

105.5 
96.9 

21.77 
21.90 

96.3 
96.9 

i 

i 

Total 

28 

36.26 

76.4 

24.17 

106.9 

'Jt^sr  ^ 

Blth  Bonus 
Without  Bonus 

5 
23 

35.11 
36.50 

^^^^^^ 

74.0 
76.9 

23. 42 
24.33 

103.6 
107.7 

1 

! 

Total 
(AToraga) 

97 

42.30 

89.1 

23.50 

104.0 

1 

|40  to  t30 

»ltli  Bonus 
Without  Bonus 

14 

83 

49.70 
41.09 

104.7 
86.6 

24.85 
24.17 

110.0 
106.9 

i 
1 

Total 

(Aierago) 

89 

51.46 

108.4 

27.08 

119.3 

Jao  to  $180 

With  Bonus 
Without  Bonus 

26 
63 

53.39 

50.58 

112.5 

106.6 

28.10 
26.62 

124.3 
117.9 

Total 

40 

47.03 

99.1 

17.42 

77.1 

»180  &   ovor 

v;ith  Bonus 
TJlthout  Bonus 

15 
25 

48.92 
45.32 

103.1 
95.5 

18.82 
16.19 

83.3 
71.6 

1 

Average  |47.47 


Avorago   $32.60 


bonuses  are  not  used  and  two  have 
lower  amounts  where  they  are  used. 
That  is,  when  the  amounts  of  selling 
expense  are  expressed  in  the  second 
unit,  there  seems  to  be  no  character- 
istic relationship  between  the  amounts 
of  selling  expense  and  the  use  or  non- 
use  of  bonuses. 

Table  72  shows  the  amounts  of  sell- 
ing expense  for  these  254  stores  ex- 
pressed in  $100  of  sales  per  $1,000 
sold  per  full-time  sales-person.  The 
differences  from  group  to  group,  as 
bonuses  are  used  or  not  used,  are  less 
marked  when  the  amounts  are  ex- 
pressed in  this  unit  than  when  they 


are  given  for  sales  alone,  and  the  di- 
rection of  change  offers  no  basis  for 
generalization. 

In  Table  73  the  amounts  of  selling 
expense  are  shown  for  each  $100  of 
total  expense  for  the  stores  classified 
as  in  Tables  71  and  72.  On  the  whole, 
judging  from  the  amounts  of  selling 
expense  for  stores  of  different  size 
and  the  use  or  non-use  of  bonuses,  it 
seems  that  the  amounts  are  smaller 
for  stores  which  have  no  bonuses. 
This  is  the  condition  in  three  of  the 
four  groups.  When  the  amounts  of 
selling  expense  are  expressed  in  terms 
of  $100  of  total  expense  per  stock 


125 


TABLE  74 


AMOUNT   OF   SELLING   EXPENSE   PER   $100   OF   TOTAL   EXPENSE   PER   $1,000   OF   SALES 

PER  FLXL-TIME  S.\LES-PERSON,  FOR  STORES  PAYING  OR  NOT  PAYING  A  BONUS 

TO  REGULAR  SALESMEN,  CLASSIFIED  BY   SIZE  OF  STORE,    1919 


Cloijlflod 

To  Ml 
Ket  S.lM 

Method 

of 

Coupcrjatlon 

number 

of 
Stores 

Selling  Expense  per  $100  of  Total  Eiponso 

Selling  Ebcpcnee  'per  $100   of  Total  Expense  per 
tl.OCO  of  Sales  per  Pull-tire  Sales-person 

teount 

Per  Cer.t. 

Amount 

ter  Cent. 

(In  OOO'i) 

Graphic                  1 

1  Actual 
C      20      40      60      60   100   120 

Graphic 
3      20      40      60      80   100   120 

Actual 

Tctal 
(Avcroge) 

254 

$47,47 

100.0, 

$2.54 

100,0 

Tot»l 

With  Bonus 
Elthout  Bonus 

60 
194 

50.06 
45.08 

105.5 
66.9 

2.21 
2.58 

94.4 

101.7 

(ATcrsge ) 

i 

i 

Total 
(Average ) 

28 

56.26 

76.4 

2.04 

87.2 

! 

Vmler  $40 

1.1th  Bonus 
Without  Bonus 

5 
23 

55.13 
S6.S0 

74.0  " 
76.9 

1.P5 

2.C6 

63.3 
88.0 

Total 
(Avor&ce ) 

67 

42.:-« 

89.1 

2.59 

110.7 

UO   to   $30 

filth  Bonus 
UltlxTut  Bonus 

14 
85 

49.70 
41.09 

104.7 
86.6- 

£.80 
2.55 

119.7 
109.0 

! 

Total 
(Avcrace) 

89 

51.46 

108.4 

2.65 

113.2 

$80  to  Sieo 

Vlth  Bonus 
Vithout  Bonus 

26 
6S 

55.58 
50.58 

112.5 
106.6 

2.68 
2.63 

114.5 
112.4 

1 

Total 
(Average) 

40 

47.03 

99.1 

1.99 

85.0 

! 

1 

{180  4  o»or 

V;ith  Bonus 
Without  Bonus 

15 
25 

48.92 
45.52 

105.1 
95.5 

1.95 
2.03 

82.5 
86.8 

1 

Average  $^7.47 


Avorace  $2.34 


turnover  the  same  tendency  charac- 
terizes the  groups  of  stores,  all  but 
one  of  them  showing  smaller  amounts 
of  selling  expense,  expressed  in  this 
unit,  where  bonuses  are  not  used. 

In  Table  74  the  amounts  of  selling 
expense  for  the  stores  classified  as  in 
Table  73  are  shown  per  $100  of  total 
expense  per  $1,000  of  sales  per  full- 
time  sales-person.  In  two  of  the 
groups  of  stores  the  amounts  are 
smaller  where  bonuses  are  not  used 
and  in  two,  smaller  where  bonuses 
obtain.  No  generalization  can  be 
made  from  this  table  in  regard  to  the 


effect  of  the  method  of  compensation 
on  selling  expense. 

The  conclusions  from  Tables  73  and 
74  are  not  wholly  negative  if  the  ex- 
perience is  considered  as  a  unit.  If 
the  amounts  of  selling  expense  are  ex- 
pressed first,  in  terms  of  sales,  and 
second,  in  terms  of  total  expense, 
they  are  found,  in  six  out  of  eight 
instances,  to  be  lower  where  no  bon- 
uses are  paid.  Moreover,  in  five  out 
of  eight  eases,  they  are  found  to  be 
lower  where  no  bonuses  obtain,  when 
they  are  expressed  in  sales  per  turn- 
over and  in  total  expense  per  turn- 


126 


over.  When  they  are  expressed  in 
terms  of  total  net  sales  and  total  ex- 
pense per  $1,000  sold  per  full-time 
sales-person,  no  significance  can  be 
attached  to  the  differences  according 
to  the  methods  by  which  salesmen  are 
compensated. 

When  Tables  67  to  74,  inclusive, 
are  considered  as  a  unit,  the  evidence 
that  the  amounts  of  selling  expense, 
per  unit  of  sales  and  per  unit  of  total 
expense,  are  lower  where  no  forms  of 
extra  compensation  are  paid  is  cumu- 
lative, inasmuch  as  the  condition 
obtains  in  twelve  of  the  sixteen  cases. 

It  is  not  contended  in  the  above  dis- 
cussion that  the  results  of  this 
analysis  conclusively  show  that  the 
amounts  of  selling  expense  are  lower 
where  neither  commissions  nor 
bonuses  are  paid.  At  best  it  indicates 
the  nature  of  the  weight  of  evidence 
from  the  experience  available.  With 
another  selection  of  stores  or  addi- 
tional evidence,  the  conclusions  might 
be  different.  The  detail  of  the  tables 
are  incorporated  in  this  study  largely 
because  they  represent  the  informa- 
tion that  was  available,  and  so  far  as 
the  Bureau  knows,  are  the  only  data 
of  this  character  which  have  been  col- 
lected. 


ditions  which  seem  to  determine  the 
amounts  of  selling  expense  in  relation 
to  sales  and  to  other  standards.  A 
further  analysis  is  now  made  of  the 
stores  classified  in  a  somewhat  differ- 
ent way.  As  a  working  hypothesis  it 
seemed  certain  that  the  amounts  of 
selling  expense  in  stores  of  different 
size  and  location  would  be  conditioned 
in  part  at  least  by  the  amounts  of 
floor  space  used,  the  expenditures 
made  for  rent  per  square  foot  of  floor 
space,  and  the  amounts  invested  in 
fixtures  per  unit  of  sales  and  per  unit 
of  floor  space.  The  following  tables 
and  the  discussion  concerning  them 
present  the  data  bearing  upon  these 
relationships. 

(1) — YEARLY  AMOUNTS  OP  SELLING 
EXPENSE  IN  RELATION  TO  EXPEN- 
DITURES FOR  RENT  PER  100 
SQUARE  FEET  OF  FLOOR  SPACE, 

The  records  of  303  stores  are  avail- 
able for  the  study  of  the  relationship 
of  selling  expense  to  sales  under  dif- 
ferent conditions  of  space  utilization 
and  expenditures  for  rent.  These 
stores  are  classified  by  size  and  by 
the  size  of  the  city  in  which  they  are 
located. 


4. — YEARLY  AMOUNTS  OF  SELLING  EX- 
PENSE IN  RELATION  TO  EXPENDI- 
TURES FOR  RENT  AND  TO  INVEST- 
MENTS IN  FIXTURES,  FOR  STORES 
CLASSIFIED  BY  YEARS,  BY  SIZE,  AND 
BY    LOCATION. 

In  the  preceding  sections,  the  stores 
have  been  classified  according  to  con- 


A. — Yearly  Amounts  of  Selling  Ex- 
pense per  $100  of  Total  Net  Sales 
for  Stores  Classified  hy  Size, 
1919. 

Addressing  attention  first  to  the 
stores  classified  by  size,  some  interest- 
ing facts  may  be  deduced  from  the 
tables  concerned.  As  the  stores  in- 
crease in  size,  as  shown  in  Table  75, 


127 


TABLE  75 

AVEIL\GE  AMOUNT  OF  FLOOR  SPACE  PER  STORE,  FOR  STORES  CLASSIFIED  BY   SIZE  AND 
BY  AMOUNT  OF  RENT  PER  100   SQUARE  FEET  OF  FLOOR  SPACE,   1919 


■ 

Auonat  cf 

Rent  per  100 

•q.   ft.   of 

ricor  Bp«ce 

Ihjnber 

of 
Store* 

Total 

Floor 

Space 

(•q.  ft.) 

Average  Floor  Space  per  Store 

Cl«a»inod 

Tct»l 

A&ount 
(•q.  ft.) 

Per  Cent. 

(In  OOO'i) 

Graphic                                                  |  Aetual 
0     20     40     60     60  100   120   140  160  160  200  220  240 

Total 
(ATortgo) 

305 

1,422,359 

4,694 

100.0 

Dnder  (20 
(20  to  (40 
(40   to  (60 
(60  k  over 

54 

120 
65 

66 

209,599 
487,157 

525,535 
400,468 

6,159 

4,060 
5,164 
4,657 

i3i.e 

(ATere«e ) 

; 

uo.o 

; 

■ 

Total 
(Averaee ) 

45 

97,716 

2,171 

— 

46.3 

Under  (20 
(20  to  (40 
(40  to  (60 
(CO  tc  over 

10 

25 

7 

3 

35,498 
46,871 
15,759 
5,608 

5,550 
1,876 
1,965 

1,203 

71.4 
40.0 
41.B 
25.6 

Dtaer  Uo 

^^^^ 

Tottl 
(Average) 

115 

547,999 

5,080 

66.6 

Under  (20 
(20  to  (40 
(40   to  (60 
(60  i  over 

16 
46 
23 
26 

94,  172 

140,526 

62,909 

50,592 

5,886 
2,923 
2,735 

1,946 

125.4 
62  .3 
58.3 
41.5 

(40  to  |80 

Total 
(Average) 

102 

511,259 

5,012 

Dnder  (20 
(20  to  (40 
(40   to  (60 
(60  &  over 

6 
41 
23 
32 

44,709 
240,855 
105,123 
120,552 

7.452 
5,676 
4,571 
3,767 

158.8 

^80  to  *180 

97.4 

; 

; 

Total 
(Average) 

45 

465,405 

10,823 

230.6 

; 

Under  t20 
(20  to  (40 
(40   to   (60 
(60  k  over 

2 

6 
10 
25 

57,020 

59,105 

143,564 

225,716 

16,510 
9,851 

14,356 
9,029 

394.5* 
209.9 
305.8* 

(130  Ic  over 

. 

Average  4,694 


roll  lar-sth  not  ehown 


128 


the  amounts  of  floor  space*  used  per 
store  increase.  The  average  amount 
in  square  feet  for  the  stores  having 
annual  sales  under  $40,000  is  2,171; 
for  those  with  annual  sales  of  $40,000 
to  $80,000  it  is  3,080 ;  for  those  with 
annual  sales  of  $80,000  to  $180,000  it 
is  5,012;  and  for  those  with  annual 
sales  of  $180,000  and  over,  10,823. 
For  a  given  amount  of  sales  the  floor 
space  used  decreases  as  the  amounts 
of  rent  paid  per  100  square  feet  of 
floor  space  increase. 

It  may  be  of  interest  to  point  out, 
for  a  given  group  of  stores,  the  de- 
tailed conditions  having  to  do  with 
the  floor  space  used  per  store,  the 
amount  of  floor  space  used  per  $100 
of  total  net  sales,  and  the  correspond- 
ing amounts  of  selling  expense  per 
$100  of  total  net  sales.  For  this  pur- 
pose, 113  stores  having  annual  sales 
of  $40,000  to  $80,000  will  be  used. 
The  average  amount  of  floor  space 
for  these  stores  is  3,080  square  feet. 
The  average  amount  per  $100  of  total 
net  sales  is  5.35  square  feet  (Table 
76),  and  the  selling  expense  per  $100 
of  total  net  sales,  $7.13  (Table  77). 
As  the  amounts  of  rent  paid  per  100 
square  feet  of  floor  space  in  these 
stores  increase,  as  shown  in  Table  75, 
the  average  amounts  of  floor  space 
decrease ;  the  amount  for  those  which 
pay  less  than  $20  per  100  square  feet 
of  floor  space  being  5,886  square  feet, 
and  for  those  which  pay  $60  and  over 
for  the  same  amount  of  space,  1,946. 
Moreover,  as  the  amounts  of  rent  paid 

*  The  total  floor  space,  rather  than  that 
used  for  selling  alone,  is  the  area  used  in 
this  and  the  following  ratios. 


per  100  square  feet  of  floor  space  in- 
crease, as  shown  in  Table  76,  the 
amounts  of  floor  space  used  per  $100 
of  total  net  sales  decrease.  For  the 
stores  paying  less  than  $20  per  100 
square  feet  of  floor  space,  the  amount 
is  9.93  square  feet,  and  for  those 
spending  $60  and  over  for  the  same 
amount  of  space  it  is  3.28.  That  is, 
the  more  valuable  the  space,  as 
evidenced  in  the  rent  paid  per  100 
square  feet  of  floor  space,  the  smaller 
is  the  space  used  in  relation  to  the 
sales.  However,  when  the  same  group 
of  stores  is  studied  from  the  point  of 
view  of  selling  expense  per  $100  of 
total  net  sales,  as  in  Table  77,  the 
amounts  are  found  generally  to  in- 
crease as  the  amounts  of  rent  paid 
per  100  square  feet  of  floor  space  in- 
crease. The  average  for  the  entire 
group  is  $7.13.  For  the  stores  paying 
less  than  $20  in  rent  per  100  square 
feet  of  floor  space  the  amount  is  $6.63, 
and  for  those  spending  $60  and  over, 
$8.44.  If  the  tendencies  are  summar- 
ized for  this  group  of  stores,  it  is 
found  that  the  amounts  of  floor  space 
per  store  and  the  amounts  of  floor 
space  per  $100  of  total  net  sales  de- 
crease, while  the  amounts  of  selling 
expense  per  $100  of  total  net  sales  in- 
crease as  the  amounts  of  rent  per  100 
square  feet  of  floor  space  increase. 

These  conditions,  as  noted,  refer 
alone  to  one  group  of  stores.  An  in- 
spection of  Tables  75,  76,  and  77  will 
show  how  nearly  the  conditions  are 
duplicated  for  the  various  groups. 

Reserving  for  the  moment  further 
consideration  of  Tables  76  and  77,  the 
reader's  attention  is  called  to  Tables 


129 


TABLE  76 

TOTAL  NET  PALES,  FLOOR  SPACE,  AND  AMOUNT  OF  FLOOR  SPACE  PER  $100  OF  TOTAL 

NET  SALES,  FOR  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT  OF  RENT 

PER  100  SQUARE  FEET  OF  FLOOR  SPACE,  1919 


ABOunt  of 
■tact  par  100 
•q.  ft.   of 

Floor  Sp&ca 

Runbar 

of 
Storaa 

Total 
Eat  Salaa 

Total 

Floor 

Spaca 

(•q.   ft.) 

Floor  Spaeo  par  $100  of  Total  Bet  Sales 

TstU 
lot  Balas 

iBount 
(aq.   ft.) 

Par  Cent. 

(In  000'») 

GraptUo 
()     ep     40      60     Bf   109   120  140   lep  IBO  2<!0  220  24O  2§0 

Actual 

total 
(AToraga) 

SOS 

$36,193,710 

1.422,339 

3.93 

100.0 

$20  to  Uo 
$40  to  teo 

$eo  i  OTar 

S4 

120 
63 
86 

3,512,144 
9,457,372 
8,649,576 
14,574,626 

209,339 
487,157 
385,335 

400,463 

5.96 
S.IS 
3.76 
2. 75 

1S1.7 
131.0 
95.7 

70.0 

(ATans*) 

Total 
(ATaraea ) 

4S 

1,399,886 

97,718 

6.98 

177.6 

U&dar  $30 
$20   to  $40 
$40  to  $«0 
$eo  &  OTar 

10 
2S 
7 
S 

275,510 
797,840 
212, BC8 
113,728 

33,498 
46,871 
13,739 
3,608 

12.16 
5.87 
6.46 
S.17 

309.4* 
149.4 
164.4 

80.7 

Csdar  tiO 

^MHHH^^^ 

Total 
(ATerago ) 

113 

6,500,336 

347,699 

5.35 

136.1 

Itodar  $20 
$20  to  $40 
$40  to  $60 

$60  4  over 

16 
48 
£3 
26 

948,525 
2,643,807 
1,366,387 
1,541,617 

94,172 
140,326 
62,909 
50,592 

9.95 
5.31 
4.60 
3.28 

252.7 
135.1 

117.0 
83.5 

^;o  to  too 

Total 
(Average ) 

102 

11,986,362 

511,239 

4.27 

108.7 

1 

nndar  $20 
$20   tc  $40 
$40   to  $60 
$60  4  over 

6 
41 

23 
32 

700,807 
4,643,255 
2,707,107 
3,935,193 

44,709 
240,855 
105,123 
120,552 

6.58 
5.19 
3.88 
3.06 

162.3 
132.1 
98.7 

77.9 

tao  to  ti£0 

1 

Total 
(Aterage) 

43 

16,307,134 

465,405 

2.85 

72.5 

tlSO  k  orar 

Osder  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

2 

6 
10 
2S 

1,587,302 
1,372,470 
4,363,274 
8,984,000 

37,020 
59,105 
143,564 
225,716 

2.33 
4. 31 

3.29 
2.51 

59.3 
109.7 

63.9 

AToraga  3.93 


Pull  length  not  shonn 


78  to  80,  inclusive,  where  the  same 
stores  are  classified  by  the  amounts 
of  rent  paid  per  100  square  feet  of 
floor  space  and  by  size.  In  order  to 
illustrate  the  significance  of  these 
tables,  a  p^roup  of  stores  paying  be- 
tween $20  and  $40  in  rent  per  100 
square  feet  of  floor  space,  but  having 


different  annual  sales,  are  selected. 
In  Table  78,  with  120  stores  involved, 
the  average  amount  of  floor  space  used 
was  4,060  square  feeet.  As  the  stores 
increase  in  size  the  amounts  used  in- 
crease rapidly  from  1,876,  for  those 
with  sales  of  less  than  $40,000,  to 
9,851  for  those  with  sales  of  $180,000 


130 


and  over.  When,  for  the  same  group 
of  stores,  the  amounts  of  floor  space 
per  $100  of  total  net  sales  are  deter- 
mined, as  in  Table  79,  an  inverse  con- 
dition holds.  The  average  amount 
of  floor  space  per  $100  of  total  net 
sales  is  5.15  square  feet.  For  the 
stores  with  sales  under  $40,000  it  is 
5.87,  and  for  those  with  sales  of  $180,- 
000  and  over,  4.31.    That  is,  the  stores 


selling  most  goods  require  least  space 
in  terms  of  sales  made. 

The  foregoing  details,  however,  re- 
fer solely  to  the  amounts  of  floor 
space  used  and  the  amounts  required 
for  each  $100  of  sales.  When  the 
amounts  of  selling  expense  per  $100 
of  sales  for  this  class  of  stores,  dis- 
tributed by  size,  are  determined  as  in 
Table  80,  the  average  is  $8.17.    Those 


TABLE  77 

AMOUNT  OF  SELLING  EXPENSE  PER  $100  OF  TOTAL  NET  SALES  PER  SALES  PER  SQUARE 

FOOT  OF  FLOOR  SPACE,  FOR  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT 

OF  RENT  PER  100  SQUARE  FEET  OF  FLOOR  SPACE,  1919 


131 


TABLE  78 

AVTRAGE   AMOUNT  OF   FLOOR  SPACE  PER  STORE,   FOR  STORES   CLASSIFIED   BY   AMOUNT 

OF    RENT   PER    100    SQUARE    FEET    OF    FLOOR    SPACE    AND 

BY    SIZE    OF    STORE,    1919 


Clsselfied 

Total 
»et  Seles 
(m  OOO'b) 

Kunber 

of 
Stores 

Total 

Floor 

Space 

(aq.   ft.) 

Average  Floor  Space  per  Store 

Apwur.t  cf 
Rrnt  per  100 

Ajoouzit 
(aq.   ft.) 

Per  Cent. 

Floor  Spaco 

Graphic                                                1  Actual 
)      20      40      60      80    100    120   140    160    180   200   E20   340 

Tjtal 
f Average) 

30$ 

1,422,359 

4,694 

100.0 

Total 
(Average) 

ttoder  >40 

t40  to    &eo 
teo  to  $iBo 

f 180  k  over 

45 

113 
102 
43 

97,716 
347,999 
511,239 
465,405 

2,171 

3,080 
5,012 
10,823 

46.5 

65.6 

106.8 

230.6 

Total 
(Average) 

34 

209,399 

6,150 

131.2 

', 

Under  $40 
(40  to     |B0 
»eo  to  |180 

(180  t  over 

10 
16 
6 
2 

55,498 
94,172 
44,709 
37,020 

3,350 
5,886 
7,452 
18,510 

71.4 
125.4 
158.8 
394.3* 

Dnder  $20 

^^^^^^^^ 

Total 
(Average ) 

120 

487,157 

4,060 

— 

•  tlO   to  $40 

Under  |40 
$40  to     (80 
(80  to  $180 

♦iBO  i  over 

25 
48 
41 

6 

46,871 
140,326 
240,855 

59,105 

1,876 
2,923 
5,876 
9,851 

40.0 
62.3 
125.2 

Total 
(Average) 

63 

325,335 

5,164 



t4C   to  J60 

Dnder  $40 
$40  to     $80 
$80  to  $180 

Mao  t  over 

7 
23 
23 

10 

13,739 

62,909 
105,123 
143,564 

1,963 
2,735 
4,571 
14,356 

41.8 
58.3 

305.8* 

Total 
(Average) 

86 

400,468 

4,657 

I^ 

|C0  k  OTer 

OOder  $40 
$40  to     $80 
$80  to  $180 

$180  k  over 

3 
26 

32 
2S 

3,608 
50,592 
120,552 
225,716 

1,203 
1,946 
5,767 
9.028 

25. 6 
41. S 

^^^^ 

192.4 

Average  4,694 


Pull  length  not  Obown 


132 


which  sell  least  have  an  average  sell- 
ing expense  of  $5.80,  and  those  which 
sell  most  have  a  selling  expense  of 
$8.94.  That  is,  the  tendency,  with  a 
single  exception,  is  for  the  amounts 
to  increase  as  the  stores  increase  in 
size.  The  conditions  observed  for  this 
single  group  of  stores,  classified  by 
the  amount  of  rent  paid  per  100 
square  feet  of  floor  space,  also  char- 
acterize all  the  stores  when  they  are 
classified  into  groups  bj'^  size.  How 
nearly  the  conditions  are  duplicated 
for  the  different  groups  may  be 
observed  by  comparing  the  detail  in 
Table  80. 

The  full  meaning,  however,  of 
Tables  76  to  80,  inclusive,  has  not 
been  brought  out  in  the  foregoing 
summary  and  it  is  necessary  to  con- 
sider further  certain  of  the  details. 

From  Table  76  it  will  be  observed 
that  the  larger  the  store  in  terms  of 
sales,  the  smaller  the  floor  space  re- 
quired per  $100  of  sales.  For  those 
selling  least  —  under  $40,000  —  the 
amount  is  6.98  square  feet,  and  for 
those  selling  most — $180,000  and  over 
— the  amount  is  2.85.  Between  these 
limits,  the  amounts  decrease  as  the 
stores  increase  in  size.  However,  as 
is  shown  in  Table  77,  the  amounts  of 
selling  expense  per  $100  of  total  net 
sales  increase  as  the  stores  increase  in 
size.  This  is  in  keeping  with  the  con- 
clusions previously  reached  at  vari- 
ous places.  When  the  selling  expense 
per  $100  of  total  net  sales  is  deter- 
mined for  the  amount  sold  per  square 
foot  of  floor  space,*  as  in  the  columns 

*  The  method  by  which  this  unit  is  com- 
puted is  explained  on  page  4,  item  25. 


in  Table  77  bearing  this  captain,  it 
will  be  seen  that,  as  the  stores  in- 
crease in  size,  there  is  a  tendency  for 
the  amounts  to  decrease.  That  is,  a 
relationship  inverse  to  that  found  for 
selling  expense  in  terms  of  sales  alone, 
characterizes  the  stores.  Moreover,  a 
similar  inverse  relationship  holds 
within  each  size-group  in  relation  to 
the  rent  paid  per  100  square  feet  of 
floor  space.  To  illustrate  this  inverse 
tendency,  stores  with  annual  sales  of 
$40,000  to  $80,000  may  again  be 
chosen.  It  costs  in  selling  expense 
per  $100  of  total  net  sales,  on  the 
average,  for  this  group,  $7.13.  The 
amounts  increase  as  the  stores  in- 
crease their  rent  payment  per  square 
foot.  When  the  amounts  of  selling 
expense  per  $100  of  total  net  sales 
are  shown  for  the  amounts  sold  per 
square  foot  of  floor  space,  the  average 
becomes  $0.38.  The  amounts,  how- 
ever, measured  in  this  unit,  decrease 
as  the  stores  increase  their  rent 
payments  per  unit  of  space.  This 
seems  to  show  that  high  rental  is 
expensive  in  terms  of  selling  expense 
per  $100  of  sales,  but  cheap  in  terms 
of  selling  expense  per  $100  of  total 
net  sales  for  the  amount  sold  per 
square  foot  on  this  space.  In  other 
words,  the  sales  are  enough  larger  on 
the  high  rental,  as  compared  with 
those  on  the  low  rental  space,  to  con- 
vert high  selling  expense  in  terms  of 
sales  to  low  selling  expense  in  terms 
of  sales  per  amount  sold  for  each 
square  foot. 

For  purposes  of  illustration,  stores 
with  sales  of  $40,000  to  $80,000  were 
used,  but  any  of  the  groups  might 


133 


TABLE  79 


TOT^Uj  net  sales,   floor  space,  and  amount  of  floor  space  per  $100   OF  TOTAL 

NET    S.VLES,    FOR    STORES    CLASSIFIED    BY    AMOUNT    OF    RENT    PER    100 

SQUARE  FEET  OF  FLOOR  SPACE  AND  BY  SIZE  OF  STORE,  1919 


* 

Cluiiriad 

■•t  Salt! 

(In  O00'«) 

■nber 

of 
Btoroe 

Total 
Bat  Sals* 

Total 

Ploor 

6pac« 

(sq.   ft.) 

Floor  Bpae«  par  $100  of  Total  Bat  Salaa 

tmraa\  at 
Brat  jxr  130 

AaonDt 
{f,,.  ft.) 

Par  Cant. 

T1»<3T  8p«»« 

0      20      40      60     80   100   120   140  160   180   200  280  240 

total 
(ATorag* ) 

303 

$56,193,718 

1,422,589 

3.93 

thidu-  )40 

>40  to    teo 
8eo  to  «ieo 

»ieo  *  OTsr 

45 

US 
102 
45 

1,399,886 
6,800,336 
U,  966, 362 
16,307.134 

97,716 
347,999 
811.239 
468,405 

6.98 
8.38 
4.27 
2.86 

72.6 

Total 
(iToragn) 

O^ar  Mo 
»M  to     |B0 

)eo  to  Jtiso 
$180  *  oT«r 

34 

3,512,144 

209,399 

8.96 

10 
1« 

6 
S 

B76, 510 

»48,52S 

700,807 

1,887,308 

33,498 
94,172 
44,709 
37,020 

12.16 
9.93 
6.58 
2.33 

Oidu'  |eo 

50,3 

Total 
(Ararago) 

1£0 

9,487,372 

487,187 

6.18 

•so  t«  Am 

ttodar  %*0 

mo  t*   too 

$80   to  $180 
$130  k  OTsr 

S3 
48 
41 

6 

797,840 
8,643,807 
4,643,288 
1,378,470 

46,871 
140,326 
240,888 

89,108 

6.87 
8.31 
8.19 
4.31 

149.4 

132.1 

Total 
(Average) 

63 

8,649,876 

328,338 

3.76 

; 

Otader  $40 
$i0  to     $80 
$80   to  $180 

$180  4  over 

7 
23 
23 
10 

212,808 
1,566,387 
2,707,107 
4,363,274 

13.759 
62,909 
105,123 
143,564 

6.4« 
4.60 
3.88 
3.29 

4«a  to  teo 

1 

Total 
(Average) 

86 

14,574,626 

400,468 

2.76 

70.0 

Ctoder  $40 
$40   to      $80 
$80  to  $180 

$180  4  over 

3 
26 
82 
25 

113,728 
1,541,617 
9,938,193 
8,954,088 

3.608 
80.892 
120.552 
225,716 

3.17 
3.28 
3.06 
2.51 

t«0  k  oTar 

: 

77.9 

63.9 

*Pull  langtb  not  ahown 


have  been  studied  with  similar  re- 
sults. It  is  worth  while  for  the  reader 
to  study  the  detail  of  Table  77,  more 
particularly  those  showing  the  selling 
expense  in  terms  of  the  extent  to 
whif'h  the  space  is  used. 

It   is   also   of  interest  to  consider 


further  than  has  been  done  in  the 
preceding  statement,  the  details  of 
Tables  79  and  80.  In  Table  79  the 
amounts  of  lloor  space  required  per 
$100  of  total  not  sales  decrease  as  the 
amounts  of  rent  paid  per  100  square 
feet  of  floor  space  increase.    For  the 


134 


stores  paying  less  than  $20  per  100 
square  feet  of  floor  space,  the  amount 
of  floor  space  required  for  each  $100 
of  total  net  sales  is  5,96  square  feet, 
and  from  this  as  a  maximum  the 
amounts  decrease  to  5.15,  when  $20  to 
$40  are  paid  in  rent  per  100  square 
feet  of  floor  space,  and  to  3.76  and 
2.75,  respectively,  when  the  amounts 
of  rent  per  100  square  feet  of  floor 


space  are  $40  to  $60,  and  $60  and 
over.  Moreover,  for  stores  with  a 
given  amount  of  rent  per  100  square 
feet  of  floor  space,  the  amounts  of 
floor  space  required  for  each  amount 
of  sales  decreases  as  the  stores  in- 
crease in  size. 

Table  80  shows  for  stores  classified 
by  the  amounts  paid  for  rent  per  100 
square  feet  of  floor  space  and  by  size, 


TABLE  80 

AMOUNT  OF  SELLING  EXPENSE  PER  $100  OF  TOTAL  NET  SALES  PER  SALES  PER  SQUARE 

FOOT    OF    FLOOR    SPACE,    FOR    STORES    CLASSIFIED    BY    AMOUNT    OF 

RENT    PER    100    SQUARE    FEET    OF    FLOOR    SPACE 

AND  BY  SIZE  OF  STORE,  1919 


ClaaelflBd 

T«t«l 
Nst  Salal 
(in  OOO'i) 

RuTtibor 

or 
Storoa 

Selling  Expense  per  tlOO  of  Total  Met  Sales 

Selling  Sxpenee  per  llOO  or  Total  Xat  Sales 
per  Salea  per  S^oare  Foot  of  Floor  Space 

tent  par  100 

ABOunt 

Per  Cent. 

laxnmt 

Per  Cent. 

floor  6p«o« 

Oraphlc 
p     2(?     40     60     80   100   120   140   160  180 

Actual 

araphlo                                1 

I  Actual 

>      20      40      60      eO    100    120  140   160   IBO 

Total 
(Average ) 

SfiS 

(9.93 

100.0 

♦0.59 

100.0 

uader  t*0 
fto  to    tao 

»60  to  llflO 
tlfio  k  OT«r 

4S 

113 
102 
45 

6.46 
7,15 
9.80 
U.45 

es.i 

71.8 
S6.7 
115.5 

0.45 
0.58 
0,42 
•0,55 

115.4 
97.4 

J07.T 
84.8 

Iot»l^ 

;                      f 

i 

Tot»l 
(iT«r«e«) 

M 

U.S4 

120.2 

O.Tl 

182.1 

Vaa»T  ^*0 
t40  to     |80 

ISO  to  tiso 
llSO  k  ovor 

10 
16 
6 

2 

7. JO 
6.65 
9.05 
17.20 

73,5 
66,8 
91,1 
173,2 

0.89 
0.66 
0.58 
0,41 

228.2* 
16S.< 
148.T 

los.i 

«M4r  fc9 

total 
(Avara^ ) 

120 

6.17 

62,5 

0.42 

107,T 

amer  («0 
^  to     tSO 

teo  to  (180 

llSO  k  OTsr 

2S 
46 
41 

6 

5,eo 

6. S3 
9.39 
e.94 

ee,4 

65,7 
■4,6 
90,0 

0.54 
0.34 
0.48 

0.59 

87.2 
87.2 
125.1 

loo.o 

«»t<>l40 

; 

: 

• 

Total 
(ATorago) 

65 

10. SS 

106.5 

0.40 

102.6 

Olilor  («0 
t40  to    leo 
ISO  to  Ilea 

liao  k  OT«r 

7 

es 
es 

10 

6.67 
T.6S 
8.05 
12.68 

67.2 
76.0 
90.9 

127.7 

0.43 
0.55 
0.56 
0.42 

UO.S 

e».7 

69.7 

107.T 

%to  to  |«0 

Total 
(A»ara«o ) 

86 

10,21 

102,8 

0.28 

71.8 

VBdar  |40 

|«o  to   leo 
leo  to  liso 
lISO  k  onr 

5 
26 
32 
2S 

6,70 
8,44 
10,94 
10,22 

67.6 
85.0 
U0,2 
102,9 

0.28 
0.2S 
0.54 
0.26 

71.8 
71.0 
87.1 
66.T 

t«>  k  ow 

• 

iTvrago  #0.30 

full  Ic&fttk  BOt  tboiD 


135 


the  amounts  of  selling  expense  ex- 
pressed first,  in  terms  of  sales,  and 
second,  in  terms  of  sales  for  the 
amount  sold  per  square  foot  of  floor 
space.  AVhen  the  stores  are  grouped 
■without  regard  to  size,  the  amounts 
of  selling  expense  on  the  whole  tend 
neither  to  increase  nor  to  decrease 
consistently  as  the  amounts  of  rent 
paid  per  100  square  feet  of  floor  space 
increase.  When  the  stores  with  a 
given  amount  of  rental  are  classified 
by  size,  however,  the  amounts  clearly 
increase  for  each  group  and  for  the 
total.  The  amounts  of  selling  expense 
per  $100  of  total  net  sales  for  the 
amount  sold  per  square  foot  of  floor 
space,  however,  decrease  as  the 
amounts  of  rent  paid  per  100  square 
feet  of  floor  space  increase,  and  they 
also  tend  to  decrease  with  a  given 
amount  of  rent  paid  as  the  stores  in- 
crease in  size.  That  is,  with  a  given 
rent  the  stores  which  have  high  sell- 
ing expense  per  $100  of  total  net 
sales  have  relatively  low  selling  ex- 
pense in  terms  of  sales  for  the  amount 
sold  on  each  square  foot  of  space  used. 

Tables  77  and  80  deserve  more  at- 
tention than  can  be  devoted  to  them  at 
this  place.  Moreover,  the  discussion 
in  Volumes  II  and  VI  of  the  Bureau's 
study  of  Costs,  Merchandising  Prac- 
tices, Advertising  and  Sales  in  the 
Retail  Distrihution  of  Clothing, 
which  relate,  respectively,  to  the 
amounts  of  rent  and  to  floor  space, 
should  be  considered  in  connection 
with  this  topic. 

Two  types  of  facts  to  which  atten- 
tion has  been  called  at  various  places 
in    the    discussion    result    from    an 


analysis  of  these  tables.  The  tables 
sliow  first,  the  actual  amounts  of  floor 
space  used  in  terms  of  sales,  and  the 
amounts  of  selling  expense  per  $100 
of  total  net  sales  and  per  $100  of  total 
net  sales  for  the  amount  sold  per  100 
square  feet  of  floor  space  for  stores 
classified  by  size  and  by  expenditures 
for  rent.  Second,  they  show  the  re- 
lationships of  these  amounts  under 
the  conditions  established.  That  is, 
both  standards  of  expense  distribu- 
tion and  tendencies  for  these 
standards  to  vary  are  determined. 

B. — Yearly  Amounts  of  Selling  Ex- 
pense per  $100  of  Total  Net 
Sales  for  Stores  Classified  hy 
Size  of  City  in  Which  Located,* 
1919. 

The  amount  paid  for  rent  is  obvi- 
ously determined  largely  by  the  size 
of  the  city,  the  type  of  the  building 
used,  the  location,  and  other  consid- 
erations, attention  to  which  is  given 
in  Volume  II  of  the  Bureau's  study 
of  Costs,  Merchandising  Practices, 
Advertising  and  Sales  in  the  Retail 
Distrihution  of  Clothing.  It  is  un- 
necessary to  repeat  what  is  said  there 
or  to  duplicate  the  tables.  Because 
of  the  relation  of  store  rent  to  size 
of  city,  it  is  thought  worth  while,  in 
the  analysis  of  selling  expense,  for 
stores  paying  difi'erent  amounts  of 
rent  per  100  square  feet  of  floor  space, 
to  classify  them  according  to  their 
city  location.  This  is  done  for  303 
stores  in  Tables  81  and  82  in  which 
two  city-groups  are  used — those  with 

*  Population  figures  are  for  1920. 


136 


population    under   40,000    and   those 
with  population  of  40,000  and  over. 

The  225  stores  shown  in  Table  81, 
located  in  the  small  cities,  utilized, 
on  the  average,  3,828  square  feet  of 
floor  space,  while  the  78  in  the  large 
cities  utilized  7,194.  In  terms  of  $100 
of  sales,  however,  the  stores  in  the 
small  cities  used  4.79  square  feet  and 
those  in  the  large  cities,  3.08.  Within 
each  city-group,  both  the  amounts  of 
floor  space  per  store  and  the  amounts 
of  floor  space  per  $100  of  total  net 
sales  decrease  as  the  amounts  of  rent 
paid  per  100  square  feet  of  floor  space 


increase.  That  is,  the  condition  with- 
in the  city-groups  is  not  different  from 
that  for  the  stores  when  no  distinction 
is  made  according  to  location. 

Table  82  shows  that  in  the  225 
stores  located  in  the  small  cities  it 
cost,  on  the  average,  $8.29  to  sell  $100 
worth  of  goods.  For  the  stores  in  the 
large  cities  the  corresponding  amount 
was  $11.56.  That  is,  it  costs  $3.27 
more  on  the  average  in  the  large  than 
in  the  small  cities.  However,  when 
the  amounts  of  selling  expense  for  the 
stores  in  the  two  city-groups  are  ex- 
pressed   in    terms    of    sales    for   the 


TABLE  81 

TOTAL  NET  SALES,  TOTAL  FLOOR  SPACE,  AND  AMOUNT  OF  FLOOR  SPACE  PER  $100 

OF  TOTAL  NET  SALES,  FOR  STORES  CLASSIFIED  BY  SIZE  OF  CITY  AND  BY 

AMOUNT  OF  RENT  PER  100  SQUARE  FEET  OF  FLOOR  SPACE,  1919 


Amount  of 
Rent  p«r  100 

sq.  ft.  of 
Floor  Space 

Humber 

of 
Stores 

Total 
Set  Sales 

Total 

Floor 

Space 

(«q.  ft.) 

Floor  Space  per  $100  of  Total  Het  Sales 

Slza 

or 
City 

Amount 
(aq.  ft.) 

C 

Per  Cent. 

(In  OOO'a) 

•^"P*^"                 1  Actual 
20  40   60   80  100  120  140  160  IflO  200 

Total 
( Average ) 

303 

$36,193,718 

1,422,359 

3.93 

1 

100.0 

i 

Under  $20 
$20  to  $40 
|40  to  $60 
$60  &  over 

54 

120 
63 
83 

3,512,144 
9,457,372 
8,649,576 
14,574,626 

209,399 
487,157 
325,335 

400,468 

5.96 
5. IS 
3.76 
2.75 

151.7 

131.0 

95.7 

70.0 

Total 
(Averags ) 

: 

Total 
(Average) 

225 

17,978,319 

861,192 

4.79 

121.9 

Under  $20 
$20  to  $40 
$40  to  $60 
#60  &  over 

32 
110 
51 
32 

1,924,842 
8,345,567 
4,795,540 
2,912,370 

172,379 
404,414 
194,420 

89,979 

8.96 
4.85 
4.05 

3.09 

228.0* 

123.4 

103.1 

78.6 

Dmler 

1 

Total 
(Average) 

T8 

18,215,399 

551,167 

3.06 

78.4 

40  and 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

2 
10 
12 
54 

1,587,302 
1,111,805 
3,354,036 
U,  652, 256 

37,020 
82,743 
130,915 
310,439 

2.33 
7.44 
3.40 
2.66 

59.3 

189.3 

86.5 

67.7 
■  -3 

' 

Average  3.93 


Pull  length  m)t  ehawn 


137 


amounts  sold  per  square  foot  of  floor 
space,  the  disadvantage  accompany- 
ing the  stores  in  the  large  cities  is 
converted  into  an  advantage,  the 
amounts  for  the  stores  in  the  small 
and  the  large  cities  being,  respec- 
tively, $0.40  and  $0.36.  While  there 
is  a  general  tendency  for  the  selling 
expenses  per  $100  of  total  net  sales, 
for  the  stores  in  the  two  groups  of 
cities,  to  increase  as  the  amounts  of 
rent  paid  per  100  square  feet  of  floor 
space  increase,  an  inverse  tendency 
holds  when  the  selling  expenses  are 
expressed  in  terms  of  sales  for  the 
amount  sold  per  square  foot  of  floor 
space.  For  the  stores  in  the  small 
cities   which   paid   less   than   $20   in 


rent  per  100  square  feet  of  floor  space, 
the  selling  expense,  in  the  more  re- 
fined unit,  is  $0.68,  and  from  this  as 
a  maximum  it  decreases  to  $0.26  for 
the  stores  paying  $60  and  over  in 
rent.  A  similar,  but  less  certain  ten- 
dency characterizes  the  selling  ex- 
pense, similarly  expressed,  of  the 
stores  in  the  large  cities.  It  is  un- 
necessary to  comment  further  on 
Tables  81  and  82.  The  reader's  at- 
tention is  called  to  similar  tendencies 
as  shown  in  Tables  76  and  77  and  to 
that  part  of  Costs,  Merchandising 
Practices,  Advertising  and  Sales  in 
the  Retail  Distribution  of  Clothing 
which  deals  with  the  effect  of  loca- 
tion on  rent. 


TABLE  82 

AMOUNT  OP  SELLING  EXPENSE  PER  $100  OF  TOTAL  NET  SALES  PER  SALES  PER  SQUARE 

FOOT   OF  FLOOR   SPACE,    FOR   STORES   CLuVSSIFlED   BY    SIZE    OF    CITY    AND   BY 

AMOUNT  OF   RENT  PER  100   SQUARE   FEET   OF   FLOOR   SPACE,    1919 


Mmowat  of 
R«at  per  100 

•q.  ft.  at 
71*or  ^ttoe 


B«ning  Expsnaa  par  tlOO  of  Totnl  Bet  BCm 


<f     tif     «9     gp     60   lOp   12,0  ly 


Sailing  Rzpaiua  per  |UK)  of  TotAl  Hat  Salaa  par 
Salaa  per  Bqvara  Vect  af  Tloor  Spaa* 


Oraphia  AtftOAl 

p     20     «0     BO     80  100  ISO  140  160  ISO  »0 


IS.fiS 


Under  tZO 
t20  to  %*0 
#40  to  («0 
•«0  k  OTer 


11. M 
8.17 

io.se 
10. ei 


e.2s 


Itodar  |20 

tao  to  $40 
•40  to  teo 
#60  ft  orer 


T.ee 

7.«2 
S.16 
8.S7 


ii.&e 


Dbder  tto 

tao  te  tao 
|4o  ts  teo 
Mo  k  enr 


17.20 
10.03 
!£.» 
10.67 


100.0 


to  .39 


I20.e 

82.3 
■106.3 
100.8 


0.71 
0.4C 
0.40 

a.ie 


89.3 


0.40 


78.5 
79.8 
92.2 
84.3 


o.se 

o.sa 

0.37 

0.2a 


116.4 


0.38 


17S.2 
101.0 
124.4 
U7.I 


0.40 
0.74 
0.42 

CIS 


100.0 

ies.1 
ioe.« 

71.8 

loe.e 


174.4 
•7.4 
94.9 

ee.T 


189.7 
107.T 
7XJ» 


Aiamca  |9.9S 

Fall  length  not  abowk 


Anraa*  |o.sa 


138 


C. — Yearly  Amounts  of  Selling  Ex- 
pense per  $100  of  Total  Net 
Sales  for  Stores  Classified  hy 
Size  and  by  Size  of  City  in  Which 
Located*  1919. 

In  the  discussion  of  Tables  81  and 
82  of  the  relation  of  the  amounts  of 
selling  expense  per  $100  of  sales  to 
expenditures  for  rent  per  unit  of 
floor  space,  no  distinction  was  made 
for  stores  of  different  size.  The 
Bureau 's  study  referred  to  above  and 
the  discussion  on  pages  127  to  138  of 
this  volume  show  conclusively  that 
both  the  size  of  store  and  the  size  of 
the  city  in  which  the  stores  are 
located  are  important  factors  in  de- 
termining the  rent  paid  per  square 
foot  of  floor  space.  In  keeping  with 
this  finding  it  has  been  thought  worth- 
while to  study  in  detail  the  opera- 
tions of  87  stores  with  annual  sales 
between  $40,000  and  $80,000  in  1919 
and  located  in  cities  with  population 
under  40,000,  classified  according  to 
the  amount  of  rent  paid  per  100 
square  feet  of  floor  space.  This  is 
done  for  two  reasons :  First,  to  estab- 
lish expense  and  operation  standards 
and  second,  to  determine  the  direction 
of  change  in  these  standards  in  stores 
according  to  their  rental  expenditures 
and  locations.  The  stores  are  so  clas- 
sified in  Table  83. 

It  is  necessary  to  remind  the  reader 
that  it  is  not  contended  that  the  dif- 
ferent conditions  of  operation  neces- 
sarily stand  in  the  relation  of  cause 
and  effect.  To  establish  conclusively 
a  causal  connection,  would  obviously 

*  Population  figures  are  for  1920. 


require  a  more  elaborate  analysis  than 
that  which  is  made.  It  is  of  interest, 
however,  to  observe  the  association 
between  the  different  amounts  of  ex- 
penditure and  the  operating  condi- 
tions for  the  stores  classified  in  this 
way,  inasmuch  as  the  merchant  who 
desires  may  compare  the  results  of  his 
own  operations  with  those  here  set 
out  when  the  conditions  are  dupli- 
cated. 

It  is  sufiicient  in  explanation  of 
this  table  to  call  attention  briefly 
under  specific  headings  to  certain 
tendencies  shown.  As  the  amounts  of 
rent  paid  per  100  square  feet  of  floor 
space  increase, 

1.  The  amounts  of  floor  space  per 
store  decrease. 

2.  The  amounts  of  floor  space  per 
$100  of  total  net  sales  decrease. 

3.  The  rent  paid  per  $100  of  total 
net  sales  increases. 

4.  The  sales  per  store  remain  essen- 
tially constant. 

5.  The  sales  per  100  square  feet  of 
floor  space  increase. 

6.  The  sales  per  sales-person  de- 
crease. 

7.  The  amounts  of  selling  expense 
per  $100  of  total  net  sales  in- 
crease. 

8.  The  amounts  of  selling  expense 
per  $100  of  total  net  sales  per 
stock  turnover  increase. 

9.  The  amounts  of  selling  expense 
per  $100  of  total  net  sales  per 
$1,000  sold  per  person  increase 
with  a  single  exception. 

10.    The  amounts  of  selling  expense 
per  $100  of  sales  per  amount  sold 


139 


per  square  foot  of  floor  space  de- 
crease. 

11.  The  amounts  of  total  expense  per 
$100  of  total  net  sales  increase. 

12.  The  rates  of  stock  turnover  on 
the  whole  decrease,  although  the 
tendency,  in  some  respects,  is 
uncertain. 

13.  The  amounts  of  gross  margin  per 
$100  of  total  net  sales  generally 
decrease. 


feet  increases.  This  holds  for 
all  stores  and  for  stores  clas- 
sified by  size. 

(2).  The  higher  the  rent,  the 
smaller  is  the  amount  of  floor 
space  used  for  each  $100  of 
sales  by  stores  of  a  given  size 
as  well  as  by  all  stores. 

(3).  For  stores  of  a  given  size, 
the  amounts  of  selling  expense 


TABLE  83 

RATIOS  OF  OPERATION  IN  STORES  HAVING  SALES  FROM  $40,000   TO  $80,000,  LOCATED 

IN  CITIES  WITH  POPULATION  UNDER  40,000  AND  CLASSIFIED  BY  AMOUNTS 

OF  RENT  PAID  PER  100   SQUARE   FEET  OF  FLOOR  SPACE,    1919 


MuBbsr 

taq 

r  Spaes 

Tot.l 
K*t  5«1«9 

Total  Hat  Salaa 

Sailing  Expense  per  $100  of 

'    To°il 
let  Svlea 

Rataa  of 

StocJc 

Oroae 

■"'of 
Total 
fat  Salaa* 

«at  Profit 

■«nt  per 

100  u.  r>. 

Stor* 

P«p  lioo 

Tot»l 
Mat  Salst 

Par 

Sto-. 

cr 

Spaca 

^Ul-tlaa 
Salaa-poraon 

^. 

Per 

stotk 
TumoTar 

Per  »1,000 
of  Salea 

Puif!Ii« 

Salaa-paraoD 

Par  Sale! 
SpHe 

Per  $100  of 
lat  balaa' 

Par 
itara* 

U*ar«««} 

87 

5,J«6 

5.7S 

»1.« 

156,  <5« 

»1,739 

♦16,427 

17.37 

♦4.34 

«0.45 

♦0.42 

♦17.20 

1.7 

100.0 

100.0 

100.0 

(fedu*  |2« 
*30   U  »«0 
|40  to»« 
Uot  onr 

U 
U 

n 
i» 

5,671 
5,076 

2,101 

5.62 
4.5S 

5.72 

1.20 
l.M 
2.15 

5.0« 

56,2SJ 
54,722 
51,004 
56,425 

592 
1,775 
2,205 
2,684 

13,809 
16, 7M 
15,251 
15,220 

6.56 

a.u 

S.OI 

0.55 
0.04 

0.30 
0.30 

13.63 

17.40 
17.80 
19.11 

1.6 
l.< 

99.0 

103.0 
97.1 
95,8 

115.4 

105.6 
91.7 

115.1 

109.3 

99.1 

14.  The  amounts  of  net  profit  per 
$100  of  total  net  sales  decrease. 

15.  The  amounts  of  net  profit  per 
store  decrease. 

The  amounts  of  expense  items  and 
the  ratios  of  operation  for  these  stores, 
as  well  as  the  certainty  or  uncertainty 
for  the  amounts  to  increase  or  de- 
crease, may  be  observed  by  consulting 
the  table. 

Z>. — Summary, 

(1).  The  average  amounts  of  floor 
space  used  per  store  decrease 
as  the  rent  per   100  square 


(4), 


per  $100  of  total  net  sales  in- 
crease, and  the  amounts  in 
terms  of  sales  for  each  square 
foot  decrease,  as  the  rent  per 
square  foot  of  floor  space  in- 
creases. 

For  stores  with  a  given  rental 
per  square  foot,  the  amounts 
of  selling  expense  per  $100  of 
total  net  sales  increase,  while 
in  terms  of  $100  sales  for  the 
amount  sold  per  square  foot, 
they  decrease  as  the  stores  in- 
crease in  size. 


140 


(5\  For  stores  with  a  given 
amount  of  rent  per  square 
foot  of  floor  space,  when  con- 
sidered without  regard  to  the 
size  of  store,  selling  expenses, 
in  terms  of  sales  are  higher 
for  stores  in  large  than  for 
stores  in  small  cities. 

(2) YEARLY       AMOUNTS     OF     SELLING 

EXPENSE  IN  RELATION  TO  INVEST- 
MENTS IN  FIXTURES  PER  $100  OF 
TOTAL  NET  SALES. 

Another  method  of  analyzing  the 
amounts  of  selling  expense  for  stores 
under  different  conditions  of  opera- 
tion consists  in  classifying  the  stores 
according  to  their  investments  in  fix- 
tures. These  investments,  moreover, 
may  be  expressed  in  terms  of  sales 
and  in  terms  of  square  feet  of  floor 
space.  The  present  discussion  has  to 
do  with  the  selling  expense  of  a  group 
of  identical  stores  from  year  to  year 
and  with  a  somewhat  larger  number 
of  stores  for  1919,  when  they  are 
studied  from  the  point  of  view  of  the 
amount  invested  in  fixtures  per  $100 
of  total  net  sales. 

A. — Yearly  Amounts  of  Selling  Ex- 
pense per  $100  of  Total  Net 
Sales  and  per  $100  of  Total  Ex- 
pense, 1919, 1918,  and  1914. 

For  a  year-to-year  comparison  of 
selling  expense  per  $100  of  total  net 
sales,  for  stores  with  different  amounts 
invested  in  fixtures  in  relation  to 
sales,  the  records  of  135  stores  are 
available  for  1914,  1918,  and  1919. 
For    these    stores,    considered    as    a 


whole,  the  amounts  decreased  between 
1914  and  1918,  and  1918  and  1919, 
as  shown  in  Table  84.  Moreover,  the 
amounts  decrease  from  year  to  year 
for  each  group  of  stores  when  clas- 
sified by  the  amount  invested  in  fix- 
tures in  relation  to  sales.  When  the 
stores  in  each  year  are  classified  in 
this  manner,  there  is  a  general  but 
not  uniform  tendency  for  the  amounts 
in  terms  of  sales  to  increase  as 
investments  in  fixtures  increase. 
Whether  this  may  be  attributed  to 
the  amount  of  the  fixture  investment 
or  to  the  size  of  the  store,  or  to  some 
other  factor,  will  be  considered  later. 
When  the  same  group  of  stores  is 
classified  for  each  year  and  for  the 
combined  years  according  to  the 
amount  of  selling  expense  per  $100 
of  total  net  sales,  and  the  amounts 
invested  in  fixtures  per  $100  of  total 
net  sales  are  determined  for  each 
group,  as  in  Table  85,  it  is  found 
that  they  decreased  between  1914  and 

1918,  and  1918  and  1919.  In  1914, 
the  average  amount  invested  in  fix- 
tures per  $100  of  total  net  sales  was 
$6.61,  in  1918  it  was  $4.65,  and  in 

1919,  $3.90.  For  the  combined  years, 
the  average  is  $4.70.  Similar  de- 
creases occur  from  year  to  year  for 
each  group  of  stores  when  classified 
according  to  the  amounts  of  selling 
expense  per  $100  of  total  net  sales. 
Accordingly,  it  follows  that  from 
year  to  year  sales  increased  faster  in 
all  the  stores  and  in  each  group,  when 
classified  by  amounts  of  selling  ex- 
pense, than  did  investments  in  fix- 
tures. 

When  the  stores  are  classified  in 


141 


TABLE  84 

TOTAL  NET  SALES,   SELLING  EXPENSE,   AND  AMOUNT  OF  SELLING  EXPENSE   PEBl  $100 

OF  TOT.VL  NET  SALES,  FOR  135  IDENTICAL   STORES  CLASSIFIED   BY   AMOUNT  OF 

FIXTURE  ACCOUNT  PER  $100  OF  TOTAL  NET  SALES,  1919,  1918,  AND  1914 


Amount  of 
Fixture  Account 

per  ^100  of 
Total  Net  Sales 

Number 

of 
Store - 
^rears 

Total 
Bet  Sales 

Total 
Selling 
Bxpense 

Selling  Kxponae  per  flOO  of  Total  Net  Sales 

Tear* 

Amount 

( 

Per  Cent. 

'^'•^P^^'^          Actual 
)  20   40   60  80  100  120 

Total 
(Average) 

40S 

$40,576,908 

$4,428,098 

»10.91 

i 

100.0 

Dnder  ^2 
♦2  to  *4 
U   to  |6 
|6  &  over 

72 
131 

86 
116 

8,020,930 
10,428,302 

7,841,233 
14,286,443 

832,922 

985,648 

796,319 

1,811,209 

10.38 

9.45 

10.18 

12.68 

mm^^mm^i^^ 

S5.2 

86.6 

93.3 

116.2 

Total 
(Average ) 

i 

i 

Total 
(Average) 

135 

18,919,235 

1,992,510 

10.53 

96.5 

I%ider  %Z 
*2  to  »4 
♦4  to  |6 
|6  fc  over 

38 
51 
23 
23 

5,228,703 
4,897,266 
3,173,841 
£,619,423 

635,282 
428,443 
326,474 
702,161 

10.24 

8.75 

10.29 

12.50 

: 

93.9 
80.2 
94.3 
114.6 

1919 

^^^^ 

! 

Total 
(Average) 

135 

13,360,145 

1,473,360 

11.03 

101.1 

'; 

Under  |S 
S2  to  ^4 
»4  to  »6 
$6  fc  over 

20 
45 
34 

56 

2,163,476 
3,706,654 
2,807,944 
4,682,071 

244,748 
370,532 
267,521 
590,559 

11.31 

10.00 

9.53 

12.61 

103.7 
91.7 
87.4 

119.6 

1918 

! 

Total 
(Average ) 

155 

8,297,530 

962,428 

11.60 

106.3 

;. 

Ibdar  $2 
#2  to  $4 
it   to  |6 
|6  &  over 

14 
35 
29 
67 

628,751 
1,824,382 
1,859,448 
3,984,949 

52,942 
186,675 
204,324 
516,489 

8.42 
10.23 
10.99 
13.01 

77.2 

93.8 

100.7 

119.2 

1914 

; 

i 

Average  tl0.91 


each  year  according  to  the  amounts 
of  selling  expense  per  $100  of  total 
net  sales,  the  corresponding  amounts 
of  fixture  investments,  similarly  meas- 
ured, increase  as  the  amounts  of  sell- 
ing expense  increase.  That  is,  the 
stores  having  large  selling  expense  in 
relation  to  sales  also  have  large  in- 


vestments in  fixtures,  similarly  meas- 
ured. 

It  is  of  interest,  when  the  135  stores 
are  classified  according  to  their  in- 
vestment in  fixtures,  to  express  the 
amounts  of  selling  expense  in  terms 
of  total  expense.  This  is  done  in 
Table  86.     From  year  to  year,  the 


142 


amounts  of  selling  expense  constitute 
increasing  proportions  of  total  ex- 
pense. In  1914,  $49.11  out  of  every 
$100  of  total  expense  was  due  to  sell- 
ing, in  1918  the  amount  was  $50.35, 
and  in  1919,  $51.63.  For  the  com- 
bined years  the  average  amount  was 
$50.63.  Similar  increases  from  year 
to  year,  with  some  rather  large  irreg- 
ularities, moreover,  characterize  each 
group  of  stores  when  classified  by  the 
amounts  of  fixture  investment  in  re- 
lation to  sales.  How  nearly  this  is 
true  may  be  observed  by  consulting 
Table  86. 


When  the  stores  in  each  of  the 
years  are  classified  by  the  amounts 
invested  in  fixtures  per  $100  of  total 
net  sales,  there  seems  to  be  no  un- 
mistakable direction  of  change  from 
group  to  group  in  the  relation  of  sell- 
ing expense  to  total  expense.  Pre- 
sumably, factors  other  than  the 
amounts  invested  in  fixtures  help  to 
determine  the  relation  between  the 
total  expense  and  its  constituent  ele- 
ment, selling  expense.  Further  con- 
sideration is  given  to  this  topic  when 
the  same  stores  are  classified  accord- 
ing to  size. 


TABLE  85 

TOTAL  NET  SALES,  FIXTURE  ACCOUNT,  AND  AMOUNT  OF  FIXTURE  ACCOUNT  PER  $100 

OF  TOTAL  NET  SALES,   FOR  135  IDENTICAL  STORES   CLASSIFIED  BY   AMOUNT  OF 

SELLING  EXPENSE  PER  $100  OP  TOTAL  NET  SALES,  1919,  1918,  AND  1914 


Amount  of 

Sslllng 

Expsnss 

psp  $100  of 

Total 

Net  Sales 

Himber 

of 
Store - 
years 

Total 
Net  Sales 

Amount  of 
Plxt<ar« 
Account 

Amount  of  Fixture  Account  per  $100  of 
Total  Net  Sales 

Tsars 

AiKrant 

Per  Cent. 

'^^P'^o                                       Actual 
)      20      40      60     80   100   120   140    160   180  200 

Total 
(Average ) 

405 

$40,576,903 

$1,908,079 

$4.70 

100.0 

i 

! 

.Total 
(ATsrage ) 

Onder  $6 

$6  to  $12 
$12  4:  over 

87 

219 

99 

4,077,823 
24,012,511 
12,436,574 

142, 121 

1,058,434 
707j524 

3.49 
4.41 

5.67 

74.3 
93.8 
120.6 

i 

Total 
(Average ) 

135 

18,919,233 

733,774 

3.90 

83.0 

1 

1919 

Dnder  $6 
$6  to  $12 

$12  S:  over 

36 
69 
30 

2,251,346 
U,282,916 
5,384,971 

66,112 
450,815 
221,847 

2.94 
4.00 
4.12 

62.6 
85.1 
87.7 

[ 
j 

Total 
(Average ) 

135 

13,3C0,14S 

620,889 

4.65 

98.9 

1 

1918 

Under  $6 
|6  to  $12 

$12  b  over 

29 
76 
31 

1,138,407 
8,472,898 
3,748,840 

52,331 
383,973 
184,585 

4.60 
4.53 
4.92 

97.9 
96.4 
104.7 

r 

i 

Total 
(Average) 

135 

8,297,530 

543,416 

6.61 

140.6 

1914 

ttider  $6 

|6  to  $12 
$12  4  ever 

23 
74 
33 

688,070 
4,256,697 
3,352,763 

23, 678 
223,646 
301,092 

3.44 
5.25 
8.93 

73.2 
111.7 
191.1 

; 

Avorafio  lt4.70 


143 


B. — Yearly  Amounts  of  Selling  Ex- 
pense per  $100  of  Total  Net 
Sales  and  per  $100  of  Total  Ex- 
pense, for  Stores  Cl-assified  hrj 
Size,  1919,  1918,  and  1914. 

For  the  year  1919  alone  the  records 
of  303  stores  are  available  for  the 
study  of  the  relation  of  selling  ex- 


pense to  sales  according  to  the  rela- 
tive amount  invested  in  fixtures  in 
terms  of  sales.  Table  87  summarizes 
the  conditions  for  these  stores  for  this 
year.  From  group  to  group,  accord- 
ing to  size,  the  amounts  of  selling 
expense  per  $100  of  total  net  sales 
increase.  This  is  the  familiar  ten- 
dency so  often  observed.    The  actual 


TABLE  86 

TOTAL  EXPENSE,  SELLING  EXPENSE,  AND  AMOUNT  OP  SELLING  EXPENSE  PER  $100  OF 
TOTAL  NET  SALES,  FOR  135  IDENTICAL  STORES  CLASSIFIED  BY  AMOUNT  OF  FIX- 
TURE ACCOUNT  PER  $100  OF  TOTAL  NET  SALES,   1919,  1918,  AND  1914 


-*— 

Amo-unt  of 
Fixture  Account 

per  SlOO  of 
Total  Net  Sales 

Humber 

of 
Store - 
years 

Total 
Expense 

Total 
Selling 
Br.j.'eaBO 

Selling  Expense  per  JlCO  of  Total  Expense 

Years 

ATTk'IIIMt. 

( 

Per  Cent. 

Graphic 

Act'oal 
3      20      40      60      80  100   120   140 

Total 
(Average ) 

405 

58,745,2U 

54,428,098 

550.63 

i 

100.0 

Ifcder  $2 
^  to  ^ 
U  to  $5 
J6  3e  over 

72 
131 

86 
116 

1,483,750 
2,110,9ti0 
1,692,296 
3,458,215 

832,922 

985, 648 

798,319 

1,811,209 

56.14 
46.69 
47.17 
52.37 

^^^^^ 

110.9 
92.2 
93.2 

103.4 

Total 
(Average) 

i 
j 

1 

f 

Total 
(Average) 

135 

3,859,150 

1,992,310 

51.63 

102.0 

Under  $2 
$2  to   |4 
$4  to  56 
$6  &  over 

58 

ei 

23 
23 

955,292 

956, 647 

626,516 

1,320,895 

535,232 
428,443 
326,474 
702,161 

56.03 
44.79 
52.13 

110.7 

88.5 

103.0 

105.0 

1919 

; 

^^^^ 

Total 
(Average ) 

135 

2,926,234 

1,473,360 

90.4 

Under  S2 
$2   to  }4 
^  to  56 
$6  tc  over 

20 
45 
34 
56 

595,711 

782,689 

629,157 

1,118,677 

244,748 
370,532 
267,521 
550,559 

'i  ^^ 

122.2 
93.5 
84.0 

104.3 

1918 

p 

Total 
(Average) 

135 

1,959,827 

952, 428 

97,0 

Under  fe 
52  to   $4 
54   to   56 
56  &  over 

14 
35 
29 
57 

132, 747 

371,614 

436,623 

1,018,643 

52, 942 
186, 673 
204,324 
510,489 

73.8 

99.2 

92.4 

100.5 

1914 

Average  550.63 


144 


amounts  will  vary  from  group  to 
group  depending  upon  the  number 
and  the  size  of  the  stores  included, 
so  that  precise  agreement  between  the 
figures  for  this  number  of  stores  and 
those  for  another  is  not  to  be  ex- 
pected. 

"When  the  stores  are  classified  ac- 
ccrding  to  size  and  investments  in 
fixtures,  as  in  Table  87,  the  amounts 
of  selling  expense  per  $100  of  total 
net  sales  increase  with  the  investment 
in  fixtures  so  stated.  To  this  general 
rule  there  are  but  three  exceptions. 
The  actual  amounts  for  a  single  group 
of  stores,  classified  by  size,  may  be 
used  to  illustrate  this  tendency. 

The  average  amount  of  selling  ex- 
pense per  $100  of  total  net  sales  for 
the  stores  with  annual  sales  of  $40,- 
000  to  $80,000  is  $7.13.  For  the  28 
stores  with  this  amount  of  sales,  which 
had  average  fixture  investments  per 
$100  of  total  net  sales  of  less  than  $2, 
the  corresponding  amount  was  $5.87. 
From  this  as  a  minimum,  the  amounts 
increase  as  the  fixture  investments  in 
relation  to  sales  increase,  until  the  in- 
vestment of  $4  to  $6  is  encountered. 
For  the  17  stores  in  this  group,  the 
average  amount  is  $9.41.  For  those 
having  the  largest  investments  in  fix- 
tures in  relation  to  sales,  the  amount 
is  $6.79.  That  is,  it  is  noticeably  less 
than  for  any  group  except  the  first. 
Generally  speaking,  however,  the 
larger  the  amount  invested  in  fixtures 
per  $100  of  total  net  sales,  the  higher 
the  amount  of  selling  expense,  sim- 
ilarly expressed.  How  nearly  this 
condition  obtains  for  each  group  of 


stores  may  be  seen  by  consulting 
Table  87. 

When  the  303  stores  are  classified 
by  size  and  by  the  amounts  of  their 
selling  expense  per  $100  of  total  net 
sales,  there  is  an  unmistakable  ten- 
dency, as  revealed  in  Table  88,  for 
the  amounts  invested  in  fixtures  in 
relation  to  ^les  to  increase  as  selling 
expenses,  similarly  measured,  in- 
crease. It  should  be  remembered 
that  the  stores  with  large  selling  ex- 
pense are  generally  large  stores,  and 
it  might  be  inferred  that  the  direct 
relationship  between  the  amounts  of 
selling  expense  and  the  amounts  in- 
vested in  fixtures,  both  expressed  in 
terms  of  sales,  is  due  largely,  if  not 
solely,  to  the  size  of  the  stores  in- 
cluded. This,  however,  does  not  seem 
to  be  the  case.  It  will  be  observed,  if 
stores  of  essentially  the  same  size  are 
compared  in  this  respect,  that,  in 
every  size-group  the  investments  in 
fixtures  in  relation  to  sales  are  rela- 
tively highest  for  the  stores  having 
the  highest  selling  expense  expressed 
in  sales.  The  explanation  for  this  re- 
lationship must  be  sought  in  some 
factor  other  than  store  size.  Further 
light  on  this  problem  is  found  in  the 
discussion  having  to  do  with  invest- 
ments in  fixtures  per  100  square  feet 
of  floor  space. 

Confirmation  of  the  tendency  for 
the  amounts  of  selling  expense  to  in- 
crease with  the  size  of  the  fixture  in- 
vestment per  $100  of  total  net  sales 
is  contained  in  Tables  89  to  92,  inclu- 
sive, which  relate,  respectively,  to  the 
combined  and  to  the  individual  years, 
1919,  1918,  and  1914. 


145 


TABLE  87 

TOTAL  NET  SALES,   SELLING  EXPENSE,   AND  AMOUNT  OF   SELLING  EXPENSE   PER  $100 

OF  TOTAL  NET  SALES,  FOR  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT 

OF  FIXTURE  ACCOUNT  PER  $100  OF  TOTAL  NET  SALES,  1919 


ClBBSlriod 

Amount  of 
Fixture  Aocouzit 

pep  »100  of 
Total  Fet  Saloa 

BuBbor 

of 
Stores 

Total 
Het  Sales 

Total 
Selling 
Expenao 

Selling  Expense  per  $100  of  Total  HaC  Sales 

Bet  Sales 
(in  OOO'a) 

ABount 

Per  Cent. 

)  20  40  60  80  100  120  140  laj 

Total 
(Average ) 

503 

$36,193,718 

$3,595,401 

$9.93 

100.0 

Under  $2 
«2  to  »4 
$4  to  $6 
$6  k   over 

89 
120 

46 
48 

10,793,092 
11,972,443 
4,736,999 
8,691,184 

984,379 
1,083,537 

469,533 
1,05.7,952 

9.12 
9.05 
9.91 

12.17 

91.8 
91.1 

99.S 
122.6 

Total 
(Average ) 

1 

Total 
(Average) 

45 

1,399,88^ 

90,453 

6.46 

65.1 

Onder  $40 

Under  $2 
t2  to  $4 
$4  to  $6 
$6  *  over 

10 
16 
9 

10 

323,183 
488,941 

283,784 
303,978 

14, 975 
30,114 
21,226 

24,138 

4.63 
6.16 
7.48 
7.94 

46.6 
62.0 
75.3 
80.0 

'^""^^^^^ 

1 
• 

Total 
(Average ) 

113 

6,600,356 

463,566 

7.13 

71.8 

|40  to  $80. 

Under  tZ 
$2  to  $4 
$4  to  C6 
$6  L   over 

28 
57 
17 
11 

1,609,446 

3,371,123 

981,374 

538,393 

94,543 

240,121 

92,359 

36,543 

5.87 
7.12 
9.41 
6,79 

59.1 
71.7 
94.3 
68.4 

Total 
(Average) 

102 

11,986,362 

1,174,3«4 

9.30 

98.7 

1 

Under  $2 
52  to  M 
S4  to  f-6 

06  t  over 

35 
36 
15 

15 

4,187,940 
4,268,220 
1,658,547 
1,871,655 

401,986 
388,373 
176,478 
207,627 

9.60 

9.10 

10.64 

11.09 

96.7 
91.6 
107.2 
111.7 

too  to  SlSO 

: 

Total 
(Average) 

43 

16,507,134 

1,867,010 

11. /.5 

115.3 

Under  JS 
(2   to  C4 
$4  to  $6 
$6  •!:  over 

15 
11 
5 

12 

4,672,523 
3,844,159 
1,813,294 
5,977,158 

472,975 
424,929 
179,470 
789,644 

10.12 

11.05 

9.90 

13.21 

101.9 
1U.3 

99.7 
133.0 

$130  t  over 

; 

""^^^"^^^ 

; 

• 

ver.iGO  09.93 


In  Table  89,  the  records  of  135  i(ien- 
tical  stores  for  the  years  1919,  1918, 
and  1914,  combined,  are  studied  in 
the  particular  mentioned.  In  each  of 
the  size-groups,  with  two  exceptions, 
the  amounts  of  selling  expense  vary 


directly  with  the  investment  in  fix- 
tures when  both  are  measured  in 
terms  of  sales.  For  the  different  store- 
groups,  the  average  is  largest  for  the 
stores  having  the  largest  investment 
in    fixtures.      This    is     particularly 


146 


noticeable  for  the  stores  with  annual 
sales  of  $40,000  to  $80,000.  The  20 
stores  which  had  less  than  $2  invested 
in  fixtures  per  $100  of  total  net  sales 
had  selling  expense  of  $7.11  so  meas- 
ured. From  this  amount  as  a  min- 
imum, the  amounts  increase  to  $11.85 
as  a  maximum  for  the  stores  with  in- 
vestment of  $6  and  over  for  every 
$100  of  goods  sold.  It  is  unnecessary, 
in  view  of  the  preceding  discussion 
for  the  303  stores  for  1919  to  com- 


ment further  upon  the  actual  amounts 
of  selling  expense,  or  upon  the  ten- 
dencies of  change  from  store-group 
to  store-group.  Table  89  may  be  con- 
sulted in  this  connection. 

Table  90,  which  is  based  upon  the 
records  for  135  stores  for  1919,  con- 
firms in  a  striking  way  the  details  for 
the  303  stores  analyzed  in  Table  87. 
How  different  the  actual  amounts  are 
in  this  year  from  those  for  the  years 
1914  and  1918  may  be  determined  by 


TABLE  88 

TOTAL  NET  SALES,  FIXTURE  ACCOUNT,  AND  AMOUNT  OF  FIXTURE  ACCOUNT  PER  $100 

OF   TOTAL   NET   SALES,   FOR  STORES   CLASSIFIED   BY   SIZE  AND  BY   AMOUNT 

OF   SELLING  EXPENSE   PER   $100   OF   TOTAL    NET   SALES,    1919 


Classified 

Amount  of 

Selllns 

ExponBe 

per  5100  of 

Total 

Het  Sales 

Huinber 

of 
Stores 

Total 
Ret  Sales 

Amount  of 
Fixture 
Account 

Amount  of  Fixture  Account  per  $100  of  Tntal  ■•*  BalM 

Bet  Sales 
(tn  OOo's) 

Aaount 

Per  Cent. 

Graphic 

Actual 
0     20     40     60     80   100   120  140   160   180  200  220  240 

Total 
(Average) 

103 

$36,193,718 

$1,326,406 

$3.66 

100.0 

! 

Totsl 
(Average ) 

Under  $6 
$6  t6  $12 
$12  Js  over 

85 
163 
55 

6,505,471 
21,034,328 
9,853,919 

139,386 
767,735 
419,285 

2.63 
3.65 
4.26 

4.01 

71.9 
99.7 
116.4 

1 

Total 
(Average ) 

45 

1,399,686 

56,181 

109.6 

i 

Oodar  $40 

Under  J6 
C6  to  $13 
$12  &  over 

20 
22 
3 

589,760 
735,802 
74,324 

17,694 
52,360 
6,127 

3.00 
4.40 
8.24 

82.0 
120.2 
225.1 

"■"■■■"     ! 

1 

Total 
(Average ) 

US 

6,500,336 

209,385 

3.22 

88.0 

^^^^   I 

Uo  to  tBO 

Onder  |6 

86  to  J12 
512  4  over 

49 
S4 

10 

2,753,742 

3,140,646 

605,948 

78,399 
105,227 
25,759 

2.85 
3.35 
4.25 

77,9 
91. S 
U6.1 

p 
1 

Total 
(Average ) 

102 

11,986,362 

408,538 

3.41 

93.2 

i 
1 

$80  to  $180 

Under  $6 

$6  to  $12 
$12  &  over 

15 
61 
26 

1,489,752 
7,335,416 
3,161,194 

35,454 
247,450 
125,634 

2.38 
3.37 
3.97 

65.0 
92.1 
108.5 

Total 
(Average ) 

43 

16,307,134 

652,302 

i 

$180  ft  over 

Under  $6 
$6  to  $12 

$12  »  over 

1 
26 
16 

472,217 
S.822,464 
6,012,453 

7,839 
382,698 
261,765 

1.66 

45.4 

1 

Average  $5<' 


147 


TABLE  89 

TOTAL  NET  SALES,   SELLING  EXPENSE,   AND  AMOUNT  OF  SELLING  EXPENSE  PER  $100 

OF    TOTAL    NET    SALES,    FOR    135    IDENTICAL    STORES    CI.ASSIFIED    BY    SIZE 

AND  BY   AMOUNT  OF  FIXTURE  ACCOUNT  PER   $100   OF   TOTAL 

NET    SALES,    1919,    1918,    AND    1914,     COMBINED 


Classified 

Total 
Hot  Solos 

ABoijnt  of 
Plxt'jre  Account 

per  tlOO  of 
Total  Net  S&les 

Number 

of 
Store- 
yaora 

Total 
Net  Sales 

Total 
Selling 
Expense 

Selling  Expense  per  $100  of  Total  Net  Sales 

Ajaount 

Per  Cent. 

Graphic                            ,    .      , 
Actual 

0      20      40      60      60    100    120   140 

Total 
(Average) 

405 

$40,576,908 

t4, 428, 098 

$10.91 

100.0 

Under  |2 
t2   to  t4 
t4  to  »6 

|6  fc  over 

72 
131 

86 
116 

8,020,930 
10,428,502 

7,841,233 
14,286,443 

832,922 

985,648 

798,319 

1,811,209 

10.38 

9.45 

10.13 

12.68 

95.1 

86.6 

93.3 

116.2 

Total 
Coverage) 

Total 
(Average ) 

112 

3,119,809 

■     263,714 

8.45 

77.5 

Onder  Uo 

Under  J2 
12  to   $4 

^4  to  ee 

$6  k  over 

14 
28 
27 
43 

403,857 

600,159 

723,519 

1,192,274 

25,921 

64,602 

58,105 

115,086 

6.42 
8.07 

8.03 
9.65 

""""^ 

58.3 
74.0 
73.6 
88.5 

Total 
(Average ) 

153 

8,672,180 

806,361 

9.30 

85.2 

♦40  to  J80 

Under  $2 
$2  to  J4 
♦4  to   »6 
|6  8c  over 

20 

63 
31 
39 

1,107,291 
3,755,597 
1,653,451 
2,155,841 

78,674 
314,078 
158,148 
255,461 

7.11 
8.36 
9.56 

11.85 

65.2 
76,6 
87.6 

108.6 

Total 
(Average) 

99 

11,411,444 

1,253,879 

10.99 

100.7 

Under  J2 
♦2  to  $4 
»4  to  $6 
$6  Jc  over 

27 
33 
19 
19 

3,021,911 
3,838,758 
2,392,924 
2,157,851 

307,174 
405,623 
274,227 
266,855 

10.16 
10.57 
11.46 
12.37 

93.1 

96.9 
105.0 
113.4 

*80  to   $160 

\ 

Totel 
(Average ) 

Under  |2 
♦2  to  t4 
t4  to   i6 
t€  !c  over 

42 

17,373,475 

2,104,144 

12.11 

111.0 

i 

11 
7 
9 

15 

3,487,871 
2,033,738 
3,071,339 
8,780,477 

421,153 

201,345 

307,839 

1,173,807 

12.07 

9.90 

10.02 

13.37 

110.6 
90.7 
91.3 

122.5 

llBO  k  over 

i 

i 

Average  $10.91 


148 


TABLE  90 

TOTAL  NET  SALES,   SELLING  EXPENSE,   AND  AMOUNT  OF  SELLING  EXPENSE  PER  $100 

OF  TOTAL  NET  SALES,  FOR  135  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT 

OF    FIXTURE    ACCOUNT    PER    $100    OF    TOTAL    NET    SALES,    1919 


Amoxint  of 
Fixture  Account 

per  flOO  of 
Totsl  Hat  Sales 

Number 

of 
Stores 

Total 
Net  Saleo 

Total 
Selling 
Ejtpenso 

Selling  Expense  per  JlOO  of  Total  Net  Sales 

■  Total 
Net  Sales 
(In  OOO'e) 

Amount 

< 

Per  Cent. 

Graphic 

ro  40  CO  CO  100  1^0  140 

Actual 

Total 
(Average) 

135 

$13,919,233 

8l, 992, 310 

810.53 

Under  $2 
«2  to  S4 
t4   to  $6 
{6  &  over 

38 

51 
23 
23 

5,228,703 
4,897,266 
3,173,841 
5,619,423 

535, 232 

428, 443 
326, 474 
702, 161 

10.24 

8,75 

10.29 

12.50 

(Average ) 

97,2 

83.1 

i 

97.7 

i 

! 
1 

Total 
(Averoge) 

12 

374,325 

24,945 

6.66 

63.2 

Under  J40 

Under  J2 
f2  to  £4 
J4  to  56 
$6  &  over 

2 

4 
3 
3 

62,964 
129,541 
S>2,7C3 
80, 117 

3,398 
8,213 
7,582 
5,752 

5.40 
6.34 
8.18 
6.45 

S1.3 
60.2 
77.7 
61.3 

Total 
(Average ) 

52 

2,967,756 

229,272 

7.73 

73.4 

t40  to  $80 

Under  J2 

iz  to  u 

U   to  86 

{6  5:  over 

8 
28 
8 
8 

470,684 

1,658,927 

431,726 

406,419 

29,603 

118,454 

43,053 

38,072 

6.31 
7.14 
9.97 

9.57 

59.9 
67.3 
94.7 
89.0 

i 

Total 
(Average) 

48 

5,603,210 

587,583 

10.49 

99.6 

i 

Under  82 
$2  to  84 

$4  to  $6 
t6  i  over 

20 
15 
7 
6 

2,217,649 

1,759,679 

636, lie 

789,764 

226,744 
168,668 
96, 369 
95,802 

97.1 

Seo  to  tl80 

i 

109.  S 

Total 
(Average) 

23 

9,973,942 

1,150,510 

109.6 

Under  $2 
82  to  $4 
84  to  86 

e 

4 

5 

6 

2,477,406 
1,349,119 
1,813,294 
4,334,123 

275,397 
133, 108 
179,470 
562,535 

105.6 
93.7 
94.0 

123.3 

$180  &.   over 

1 

Average  810.55 


149 


consulting  the  tables  applying  to  the 
respective  years. 

It  should  be  remembered,  while  135 
identical  stores  are  considered,  that 
tiie  same  stores   are  not  necessarily 


found  from  year  to  year  in  either  the 
same  sales-  or  in  the  same  fixture 
investment-group.  Both  sales  and  in- 
vestments increased  from  year  to 
year.       Accordingly,     in     successive 


TABLE  91 

TOTAL  NET  SALES,   SELLING  EXPENSE,   AND  AMOUNT  OF  SELLING  EXPENSE   PER  $100 

OF  TOTAL  NET  SALES,  FOR  135  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT 

OF    FIXTURE    ACCOUNT    PER    $100    OF    TOTAL    NET    SALES,    1918 


Classified 

Total 
Net  Sales 
(In  OOO'a) 


Aiaovnt  of 
Fixture  Account 

per  flOO  of 
Total  Net  Sales 


Totol 
Net  Sales 


Total 
Selling 
Expense 


Selling,  Expense  par  SlOO  of  Total  Net  Sales 


0  20  40  60  80  100  120  140 


Total 
(Average ) 


$49  to  tBO 


09O  to  $180 


two 


Totol 
(Average ) 


513,360,145 


$1,473,360 


Under  $2 
52  to  04 
$4  to  J5 

t6  8:  over 

Total 
(Average ) 


2,165,476 
3,706.654 
2,807,944 
4,682,071 


1,117,468 


Under  (2 
$2  to  $4 
$4  to  $6 

t6  5:  over 


124, 9f 6 
269,792 
297, 192 
425,518 


Total 
(Average) 


3,239,547 


Under  S2 
$2  to  i4 

$4  to  $6 
$6  &  over 


434,936 

1,335,132 
779,116 
690,363 


Total 
(Average ) 


3,298,407 


Under  t2 
t2  to  ^ 
$4  to  |6 
$6  &  over 


593, 109 

1,417,061 

654,591 

633,646 


Total 
(Average) 


5,704,723 


Under  52 
$2  to  $4 
$4  to  36 
C*  t  over 


1,010,465 

684,669 

1,077,045 

2,932,544 


244,748 
370,532 
267,521 
590,559 


92,371 


9,959 
19,976 
23,674 
38,762 


299,694 


33,916 
121,256 
65,955 
78,567 


363,676 


55,117 
161,063 
67,483 
80,013 


717,619 


145,756 
68,237 
110,409 
393,217 


11.31 

10.00 

9.53 

12.61 


6.27 


7.97 
7.40 
7.97 
9.11 


9,25 


7.80 

9.00 

8.47 

11.38 


11.03 


9.29 
11.37 
10.31 


12.58 


14.42 
9.97 
10.25 
13.41 


Average  $11.03 


100.0 


102.5 
90.7 
86.4 

114.3 


75.0 


72.5 
67.1 
72.3 
82.6 


83.9 


70.7 
82.3 

76.9 
103.2 


100.0 


84.2 
103.1 

93. S 
114.S 


150 


years,  the  same  stores  do  not  neces- 
sarily occupy  the  same  position.  In 
spite  of  this  fact,  however,  it  has  been 
thought  worth-while  to  include  stores 


the  identity  of  which  has  remained 
the  same. 

Further  illustrating  the  actual  in- 
vestments in  fixtures  for  stores  when 


TABLE  92 

TOTAL   NET  SALES,   SELLING  EXPENSE,   AND   AMOUNT   OF  SELLING  EXPENSE   PER  $100 

OF  TOTAL  NET  SALES,  FOR  135  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT 

OF    FIXTURE    ACCOUNT    PER    $100    OP    TOTAL    NET    SALES,    1914 


«laBBlTl8d 

Total 
Bet  Sales 
(In  000  *^s) 


Total 
(Average ) 


Ifader  ^0 


$40  to  ^0 


fSO  to  #180 


Amotrnt  of 
Fixture  Account 

per  $100  of 
Total  Net  Sales 


Total 
(Average ) 


Under  (? 
#2  to  $4 
t4  to  t6 
ie  &  over 


Total 
(Average) 

Under  tZ 
is   to  |4 

f4  to  $6 
$6  &  over 


Total 
(Average ) 


Under  $2 
#2  to  $4 
ti  to  (6 
#6  &  over 


Total 
(Average ) 


Under  $2 
#2  to  #4 
#4  to  $6 
#6  &  over 


Total 
(Average ) 


Dbder  #2 
|2  to  |4 

$4  to  |6 
$6  &  over 


Total 
Net  Sales 


$8,297,530 


14- 
55 


628,751 
1,824,382 
1,859,448 
5,984,949 


1,628,016 


215,927 
400,826 
333, 624 
677,639 


Total. 
Selling 
Expense 


|962, 428 


52,942 
186,675 
204,524 
518,489 


146,398 


2,464,877 


eoi, 671 

761,538 

442,609 

1,059,059 


2,509,827 


211,153 
662,018 
902,215 
734,441 


1,694,810 


161,000 
1,515,810 


12,564 
36,413 
26,849 
70,572 


277, 395 


15,065 

74,368 

49, 140 

138,822 


502, 620 


25,513 

75,692 

110,575 

91,040 


236,015 


17,960 
218,055 


Selling  Expense  per  flOO  of  Total  Net  Sales 


111.60 


8.42 
10.25 
10.99 
15.01 


8.99 


5.82 

9.08 

8.05 

10.41 


11.25 


7.47 

9.77 

11.10 

13.11 


12.06 


11.99 
11.46 
12.25 
12,40 


9.92 
14.40 


Oraphlo 


O     20     40     60     80   100  120  140 
I         I         1         I         I         I         I 


Average  ^11.60 


100.0 


72.6 
88.2 

94.7 
112.2 


77.5 


50.2 
78.3 
69.4 
89.7 


97.0 

64.4 

84.2 

95.7 

113.0 


104.0 

103.4 

98.8 

105.4 

106.9 


85.5 
124.1 


151 


classified  by  size  and  by  selling  ex- 
pense per  $100  of  total  net  sales,  as 
shown  in  Table  88  for  303  stores,  it 
is  of  interest  to  include  Tables  93  to 
96,  inclusive,  which  refer,  respectively, 
to  the  combined  and  to  the  individual 
years  under  discussion.  From  the  de- 
tails of  these  tables  two  facts  stand 


out.  First,  as  the  stores  increase  in 
size,  the  investments  in  fixtures  per 
$100  of  total  net  sales  tend,  on  the 
whole,  to  decrease.  This  condition 
characterizes  the  stores  with  annual 
sales  less  than  $180,000.  The  group 
of  smallest  stores,  generally  speaking, 
have  the  largest  amounts  invested  in 


TABLE  93 

TOTAL  NET  SALES,  FTXTLTRE  ACCOUNT,  AND  AMOUNT  OF  FIXTURE  ACCOUNT  PER  $100 

OF  TOTAL  NET  SALES,   FOR   135   IDENTICAL  STORES   CLASSIFIED   BY   SIZE 

AND    BY    SELLING    EXPENSE    PER    $100    OF    TOTAL    NET 

SALES,    1919,    1918,    AND    1914 


Classified 

Amount  of 

Selllne 

Expense 

per  5100  of 

Total 

Net  Sales 

N'jnber 

of 
Store- 
years 

Total 
Net  Sales 

Anoujit  of 
Plxtijro 
Acco'int 

Ar.o'int  of  Fixture  Account  per  $100  of  Total 
Net  Sales 

Total 
Bet  Sales 

Anount 

Per  Cent. 

(In  000' a) 

'^^P^'-"                                      Actual 
)      20      40      60      30    100    120   140    160 

Total 
(Averago ) 

405 

J40,576,90S 

Jl,  908,079 

e4.70 

100. 

i 

Total 

Under  56 

$6  to   512 
$12  &  over 

87 
213 
99 

4,077,823 
24,012,511 
12,436,574 

142,121 

1,053,434 

707,524 

3.49 
4.41 

5.67 

74.3 

93.8 

120.6 

(Average ) 

Total 
(Average ) 

112 

3,119,309 

164,125 

5.26 

111.9 

1 

Under  t40 

Under  $6 

$6  to  512 
$12  !-.  over 

38 
56 
18 

1,054,505 

1,552,624 

512, 679 

45,919 
88,366 
29,840 

4.35 
5.69 
5.82 

92.6 
121.1 
123.8 

i 

Total 
(Average) 

153 

8,672,180 

377,800 

4.36 

92.8 

$40  to  $80 

Under  C6 

$6  to  §12 
$12  k  over 

41 
79 
33 

2,227,407 
4,519,537 
1,925,236 

80,510 
193,546 
103,744 

3.01 
4.28 
5.33 

76.8 
91.1 
114.7 

i 

Total 
(Avcrarjo ) 

98 

11,411,444 

431,319 

3.78 

80.4 

^^^^ 

$80  to  Jmo 

Under  56 

$6  to  Cl2 
$12  It  over 

8 
56 
34 

795,910 
6,722,894 
3,892,640 

15,692 
252,060 
163,567 

1.97 
3.75 
4.20 

41.9 
79.8 
89.4 

1 

1 

Total 
(Avomce ) 

42 

17,373,475 

934,835 

5.38 

114.5 

SlBO  ^  over 

Under  06 
$6  to  512 
$12  tc  over 

23 
14 

11,217,456 
6,156,019 

524,462 
410,373 

4.08 
6.67 

99.6 
141.9 

; 

: 

Average  $4.70 


152 


fixtures  in  relation  to  their  sales.  To 
this  rule,  however,  there  are  a  few 
exceptions,  due  probably  to  the  num- 
ber and  size  of  the  stores  included. 
Second,  the  amounts  invested  in  fix- 
tures in  terms  of  sales  are  largest  for 
the  stores  having  large  selling  ex- 
pense, similarly  measured. 


The  amounts  of  selling  expense  may 
also  be  expressed  in  terms  of  total  ex- 
pense. This  is  done  in  Tables  97  to 
100,  inclusive,  for  stores  classified  by 
size  and  amount  of  investments  in 
fixtures  in  terms  of  sales,  for  the  com- 
bined and  for  the  individual  years. 
When  the  amounts  are  expressed  in. 


TABLE  94 

TOTAL  NET  SALES,  FIXTURE  ACCOUNT,  AND  AMOUNT  OF  FIXTURE  ACCOUNT  PER  $100 

OF  TOT.VL  NET  SALES,  FOR  135  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT 

OF    SELLING    EXPENSE    PER    $100    OF    TOTAL    NET    SALES,    1919 


Amo'int  of 

Selling 

Expense 

per  $100  of 

Total 

Net  Sales 

Sijmber 

of 
Stores 

Total 
Net  Sales 

Anount  of 
Fixture 
Account 

1 

Anount  of  Fixture  Accoixnt  per  §100  of 
Total  Net  Sales 

Total 
Het  Sales 
(In  OOO'b) 

Amoijnt 

C 

Per  Cent. 

Graphic 

Actual 

)     20      40     60     80   100   120  140 

Total 
(Average ) 

135 

§18,919,233 

§738,774 

§3.90 

100.0 

: 

Total 

Onder  §6 

$6  to  §12 
§12  8:  over 

36 
69 
30 

2,251,346 

11,282,916 

5,384,971 

66,112 
450,815 
221,847 

2.94 
4.00 
4,12 

75.4 

102.6 
105.6 

(Average ) 

1 

Total 
(Average ) 

12 

374, 325 

16, 697 

4.46 

114.4 

Onder  ^ 

Under  §6 

§6  to  512 
§12  6c  over 

5 
7 

140,498 
233,827 

5,462 
11,235 

3.89 
4.80 

99.7 
123.1 

1 

Total 
(Average) 

52 

2,967,756 

107,839 

3.63 

93.1 

'""'"'^'^^""  » 

$40  to  §80 

Under  §6 
§6  to  §12 
§12  8:  over 

23 
21 

e 

1,314,938 

1,203,620 

449,198 

44,958 
41,606 
21,275 

3.42 
3.46 
4.74 

87.7 

88.7 
121.5 

; 

1 

Total 
(Average) 

48 

5,603,210 

175,362 

3.13 

80.3 

i 

S80  to  §180 

Under  §6 

§6  to   §12 
§12  &  over 

8 
24 
16 

795,910 
2,880,333 
1,926,967 

15,692 
95,844 
63,826 

1.97 
3.33 
3.31 

50.5 
85.4 
84.9 

f 

\ 

Total 
(Average) 

23 

9,973,942 

438,876 

4.40 

112.8 

1 

?180  &  over 

«nder  §6 
§6  to  §12 
§12  Ic  over 

17 

6 

6,965,136 
3,003,806 

302,130 
136,746 

4.34 
4.54 

111.3 
116.4 

„ 

Averajo  C3.90 


153 


this  form,  for  stores  classified  by  size, 
there  seems  to  be  no  unmistakable 
tendency  for  them  in  any  one  of  the 
years  to  increase  or  to  decrease  with 
the  amounts  invested  in  fixtures  per 
$100  of  total  net  sales.  One  would  not 
be  justified,  from  the  data  available 
in  concluding  that,   proportionately, 


selling  expense  becomes  either  a 
larger  or  smaller  part  of  the  total 
operating  expense  as  the  fixture  in- 
vestments in  terms  of  sales  increase. 
In  some  instances  there  is  a  decided 
tendency  for  the  amounts  to  increase ; 
in  others,  there  is  equally  as  clear  a 
tendency  for  them  to  decrease.    The 


TABLE  95 

TOTAL  NET  SALES,  FIXTURE  ACCOUNT,  AND  AMOUNT  OF  FIXTURE  ACCOUNT  PER  $100 

OF  TOTAL  NET  SALES,  FOR  135  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT 

OF    SELLING    EXPENSE    PER    $100    OF    TOTAL    NET    SALES,    1918 


Anount  of 

Selling 

Expense 

per  $100  of 

Total 

Ket   Sales 

"riunber 

of 
Stores 

Total 
Net  Sales 

Awoijnt   of 
f^xMre 
Acco'jnt 

Amoiint  of  Fixture  account  per  JlOO 
Total  :;et  Sales 

of 

Total 
Det  Sales 

Amo'jnt 

( 

Per  Cent. 

<ln  coo's) 

Graphic 
^     20     40     60     80   100   120   140 

Actual 

Totcl 

1S5 

013,360,145 

J.620,6S9 

04.65 

100.0 

Total 
(Average) 

Under  06 

C«  to  tl2 
'^12  ?;  over 

28 
76 
31 

1,138,407 
6,472,898 

3,748,840 

52,331 
583,973 
184,585 

4.60 
4.53 

4.92 

98.9 

97.4 

105.8 

; 

Total 
(Averdge ) 

37 

1,117,468 

62,352 

5.58 

120.0 

Under  t40 

Under  55 

$6  to  $12 
5l2  fc  over 

13 
18 

371,155 
554,810 
191,503 

20,150 
31, 654 

10,548 

6.43 
5.71 
5.51 

116.8 
122.8 
118.5 

Total 
(Average) 

56 

3,239,547 

132,364 

4.09 

88.0 

1 

t40  to  480 

Under  t6 

*6  to  312 
012  1-.  over 

15 
30 
11 

767,252 

1,741,593 

730,702 

32, 181 
68,060 
32,123 

4.19 
3.91 
4.40 

90.1 
84.1 
94.6 

; 

1 

Tctnl 
(Avcrafc ) 

28 

3,298,407 

127,804 

3.87 

83.2 

tso  to  tieo 

'Alder  J6 
C6  to  S12 
512  4  over 

19 
9 

2,300,126 
998,281 

84,115 
43,689 

S.66 
4.38 

78.7 

94.2 

Total 
(Average ) 

14 

6,704,723 

298,569 

5.23 

112.5 

; 

*180  i  ovoi- 

Older  %6 
$6  to  112 

$12  h  over 

9 
5 

3,876,369 
1,628,354 

200,144 
98,225 

6.16 
5.57 

111.0 

115.5 

1 

1 

Average  S4.6e 

154 


results  of  the  comparison  are  negative 
so  far  as  direction  of  change  is  con- 
cerned. They  are,  however,  not  with- 
out value  when  thought  of  as 
standards  or  norms  and,  as  such,  con- 
stitute measures  of  the  experience  of 
the  stores  under  consideration.  They 
may  be  used  by  the  individual  mer- 
chant to  check  his  own  figures  when 
the  conditions  set  out  in  the  tables  are 
duplicated  in  his  own  experience. 


C. — Yearly  Ammints  of  Selling  Ex- 
pense per  $100  of  Total  Net  Sales 
and  per  $100  of  Total  Expense, 
for  Stores  Classified  by  Amounts 
of  Inventory  in  Relation  to 
Sales,  1919. 

In  the  foregoing  discussion  of  the 
relation  of  selling  expense  to  sales 
and  to  total  expense  in  stores  with 
different  amounts  invested  in  fixtures 


TABLE  96 

TOTAL  NET  SALES,  FIXTURE  ACCOUNT,  AND  AMOUNT  OF  FIXTURE  ACCOUNT  PER  $100 

OF  TOTAL  NET  SALES,  FOR  135  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT 

OF    SELLING    EXPENSE    PER    $100    OF    TOTAL    NET    SALES,    1914 


Classified 

Amount  of 
Selling 
Expense 
per  5100  of 
Total 
Net  Sales 

thOTber 

of 
Stores 

Total 
Bet  Sales 

Amount  of 
Fixture 
Account 

Amo'int  of  Flxt'ire  Acco'int  per  OlOO  of  Total  Ilct  Sales 

Total 
Net  Sales 
(in  OOO'b) 

Amount 

Per  Cent. 

Graphic 
20      40      60      SO    100    IRp    140   160    130   200   220 

Actual 

Total 
(Average) 

US 

58,207,530 

5548,416 

J6.61 

Total 
(Average) 

Under  $6 

t6  to  $12 
$12  &  over 

25 
74 
58 

688,070 
4,256,697 
5,552,763 

25,678 
225,646 
501,092 

3.44 

5.25 
8.98 

52.0 

155.9 

I 

Total 
(Average ) 

65 

1,628,016 

85,076 

5.25 

i 

tinaep  f40 

Under  Se 
{6  to  $12 

tl2  t  over 

20 
51 
12 

542,853 
765,987 
521,176 

20,507 
45,477 
19,292 

3.74 
5.95 
6.01 

56.6 
90.0 

Total 
(Average) 

45 

2,464,977 

157, 597 

5.58 

2.52 
5.53 
6.75 

84.4 

£40  to  $80 

Dnder  J6 
06  to  512 
Sl2  &  over 

5 
28 
14 

145,217 

1,574,524 

745,356 

5,371 
83,880 
50,346 

— 

55. 1 

Total 
(Average ) 

2? 

2,509,827 

128,153 

5.11 

CSO  to  5180 

Under  f« 
$6  to  ei2 
812  St  over 

IS 
9 

1,642,435 
967, 392 

72,101 
56,052 

4.67 
5.79 

70.7 

Total 
(Average) 

5 

1,C54,610 

197,590 

11.66 

17G.4 

§180  i:  over 

Under  $6 

56  to  512 
512  i  over 

2 

5 

375,951 
1,318,659 

22.188 
175,402 

5.90 
13.30 

69.5 
£01.2 

• 

1 

M/craze  56.61 

155 


TABLE  97 

TOT.U.   EXPENSE,    SELLING   EXPENSE,    AND    AMOUNT    OF    SELLING    EXPENSE   PER    $100 

OF    TOTAL   EXPENSE,    FOR    135    IDENTICAL    STORES    CLASSIFIED    BY    SIZE 

AND  BY  AMOUNT  OF  FIXTURE  ACCOUNT  PER  $100  OF  TOTAL 

NET  SALES,  1919,  1918,  AND  1914,  COMBINED 


' 

Amount  of 
PLxtupe  Aooount 

per  $100  of 
Total  Het  Sales 

Mimber 

of 
Store- 
years 

Total 
Expense 

Total 
Selling 
Expense 

Selling  Expense  per  ^00  of  Total  Expense 

Classified 

Total 

Amount 

Per  Cent. 

(m  000' s) 

Graphic         1 

1  Actual 
0  20   40  60  80  100  120  140 

Total 
(Average ) 

405 

53,745,211 

$4,428,098 

$50.63 

100.0 

Under  $2 
$2  to  ^ 
U   to  $6 
$6  &  over 

72 
131 

66 
116 

1,483,750 
2,110,950 
1,692,295 
3,458,215 

832, 922 

985,648 

798,319 

1,811,209 

56.14 
46.69 
47.17 
52.37 

U0.9 
92.2 
93.2 

103.4 

Total 
(Avera^o) 

Total 
(Average ) 

112 

628, 514 

263,714 

41.96 

82.9 

Under  {40 

Under  $2 
$2  to  J4 
$4  to  $6 
$6  k   over 

14 
28 
27 
43 

83,689 
143,353 
145,281 
256,191 

25,921 

64,602 

58,105 

115,086 

30.97 
45. OG 
39.99 
44.92 

61.2 
89.0 
79.0 
88.7 

; 

• 

Total 
(Average ) 

153 

1,733,531 

806,361 

46.52 

91.9 

: 

Under  52 
S2  to  $4 
$4  to  56 
$6  &  over 

20 
63 
31 
39 

174,700 
728,539 
334,351 
495,941 

78, 674 
314,078 
158,148 
255,461 

45.03 
43.11 
47.30 
51.51 

88.9 

65.1 

93.4 

101.7 

$40  to  J30 

; 

; 

Total 
(Average ) 

98 

2,420,053 

1,255,879 

51.81 

102.3 

Under  $2 
C2  to  C4 
&4  to  56 
06  u:  ovar 

27 
33 
19 
19 

544,426 
768,058 
564,612 
542,957 

307,174 
405,623 
274,227 
260,855 

56.42 
52.81 
48.57 
49.15 

111.4 

104.3 

95.9 

97.1 

§80  to  S180 

Total 
(Average ) 

42 

3,963,113 

2,104,144 

53.09 

104.9 

Under  $2 
52  to  54 
54  to  56 
56  i  over 

11 
7 
9 

15 

680,935 

471,000 

643,052 

2,163,126 

421,153 

201,345 

307,339 

1,173,807 

61.85 
42.75 
47.50 
54.26 

122.2 
84.4 
93.8 

107.2 

$180  i  over 

^^^^^ 

Avcra-o  '550.65 


156 


TABLE  98 

TOTAL    EXPENSE,    SELLING   EXPENSE,    AND    AMOUNT    OP    SELLING    EXPENSE   PER    $100 

OP  TOTAL  EXPENSE,  FOR  135  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT 

OF  FIXTURE   ACCOUNT   PER  $100   OF  TOTAL   NET   SALES,    1919 


Amount  of 
fixture  Account 

per  JlOO  of 
Total  Net  Sales 

Number 

of 
Stores 

Total 
Expense 

Total 
Selling 
Expanse 

Selling  Expense  per  $100  of  Total  Expense 

Total 
Het  Sales 
(In  OOO'o) 

Anovint 

Per  Cent. 

Graphic 

Actual 
5  20   40  60  80  100  120 

Total 
<Avarage ) 

135 

$3,859,150 

Jl, 992, 310 

$51.63 

100.0 

Under  $2 
$2  to  $4 
$4  to  46 

f6  &  over 

58 
51 
33 
25 

955,292 
955,647 
626,316 

1,320,895 

535,232 
428,443 
326,474 
702,161 

56.03 
44.79 
52.13 
53.16 

108.5 

Total 
(Average ) 

! 

101.0 
103.0 

Total 
(Average ) 

la 

68,009 

84,945 

36.63 

71.0 

Onder  ^40 

Uhder  ij2 
J2  to  $4 
i4   to  $6 
$6  &  over 

8 
4 
3 
3 

17, 342 
17,578 
15,763 
17,322 

3,398 
8,213 
7,  582 
5,752 

19.59 
46.72 
43.10 
33.21 

37.9 
90.5 
93.2 
64.3 

i 

Total 
(Average) 

sa 

510,917 

229,272 

44.87 

86.9 

1 

Under  $2 
^  to  t4 
$4  to  §5 

$6  k   over 

8 

8 
8 

70,645 
288,400 
73,706 
78,265 

29, 693 

118,454 

43,053 

38,072 

42.09 
41.07 
58.41 
49.64 

81.5 

79.5 

113.1 

94.2 

*40  to  ^0 

: 

: 

; 

Total 
(Average ) 

48 

1,112,863 

587,583 

52.80 

102.3 

Uiider  f2 
^  to  ^ 
*4  to  $G 
t6  &  over 

20 
15 
7 

6 

386,038 
341, 952 
172,421 
212,447 

226,744 

168,668 

96, 559 

95,802 

58.74 
49.32 
55.89 

113.6 
95.5 

108.3 
87.3 

#80  to  $180 

i 

Totml 
(Average) 

S3 

2,167,360 

1,15.0,510 

102.8 

I 

Under  ^8 
S2  to  $4 
*4  to  §6 
56  &  over 

6 

4 
6 
6 

481,566 

308,707 

364,426 

1,012,861 

275, 597 
133,108 
179,470 
562,535 

110.8 
83.5 
95.4 

107.6 

#180  &  over 

• 

; 

! 

Averagd  051.63 


157 


TABLE  99 

TOTAL    EXPENSE,    SELLING  EXPENSE,    AND    AMOUNT    OF    SELLING   EXPENSE   PER    $100, 

OF  TOTAL  EXPENSE,  FOR  135  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT 

OF  FIXTURE  ACCOUNT  PER  $100   OF   TOTAL   NET   SALES,    1918 


Amount  of 
Fixture  Account 

per  1100  of 
Total  Net  Sal** 

Humber 

of 
Storas 

Total 
Expense 

Total 
Selling 
Bxponao 

Selling  Expense  per  5l00  of  Total  Expense 

Classified 

Totkl 
Bet  Salea 

Imowat 

Per  Cent. 

(In  ooo'e) 

•^^P*^'              Actual 
[)  20  40  60   80  100  120  140  160' 

Total 
(Average) 

135 

$2,926,234 

51,473,360 

$50.35 

100.0 

j 

Under  f2 
12  to  $4 
^4  to  $6 

f6  i  over 

20 

34 

56 

395,711 

782, 689 

629, 157 

1,  IIB, 677 

244,748 
370,532 
267,521 
590,659 

61.85 
47.34 
42.52 
52.79 

122.8 
94.0 
64.4 

104.8 

Total 
(Average ) 

1 

i 

Total 
(Aver.Re) 

•    sr 

215,913 

92,371 

42.78 

85,0 

! 
j 

Under  $2 
$2  to  $4 
J4  to  J6 

f6  &  over 

4 

e 
11 

14 

24,289 
47,242 
62, 777 
81,605 

9,959 
19,976 
83,674 
38,762 

41.00 
42.28 
37.71 
47.50 

81.4 
84.0 
74.9 
94.3 

TJUdsr  UO 

^^^^■■■1 

■""■^"■^^1 

Total 
(Average) 

56 

657,743 

299,694 

45.56 

90.5 

Under  $2 
tz   to  U 
ii   to  $6 
J6  &  over 

8 
22 
15 
11 

72,254 
277,257 
161,091 
147,141 

33,916 
121«356 
65,955 
78,567 

46.94 
43.73 
40.94 
53.40 

93.2 

86.9 
61.3 
106.1 

$40  to  $80 

Total 
(Average) 

28 

719, 130 

363,676 

50.57 

10O.4 

Under  $2 
$2  to  $4 
$4  to  $5 
|6  t  over 

5 

12 
5 
6 

99,599 
295,897 
161,475 
162,159 

55,117 

161,063 
67,483 
80,013 

55.54 
54.43 
41.79 
49.34 

109.9 
108.1 
63.0 

530  to  $180 

! 

: 

i 

Total 
(Average) 

14 

1,533,448 

717, 619 

53.62 

106.9 

Under  $2 
»2  to  »4 
«4  to  $6 
♦6  i  over 

3 
9 

3 
5 

199,569 
162,293 
243,814 
727,772 

145,756 

68,237 

no,  409 

593,217 

73.04 
42,05 
45.28 
S4.0S 

145.1 
63.5 
89.9 

107.3 

tieo  t  over 

; 

1 

Average  $50.^ 


158 


TABLE  100 

TOTAL   EXPENSE,    SELLING   EXPENSE,    AND    AMOUNT    OP   SELLING   EXPENSE   PER   $100 

OF  TOTAL  EXPENSE,  FOR  135  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT 

OF  FIXTURE   ACCOUNT   PER  $100   OF   TOTAL   NET   SALES,    1914 


Classified 

Amount  of 
Fixture  Account 

per  tlOO  of 
Total  net  Sales 

number 

of 
Stores 

Total 
Expense 

Total 
Selling 
Expense 

Selling  Expense  per  $100  of  Total  Expense 

Total 
Net  Sales 
(In  OOO'a) 

Amount 

Per  Cent. 

<^"P^^°         Actual 
D   20   40   60   80  100  120 

Total 
(Average ) 

135 

$1,959,827 

^962, 428 

$49.11 

100.0 

Under  |2 
^  to  ii 
U   to  §6 

J5  S:  over 

14 
35 

29 
57 

132,747 

371,614 

436,823 

1,018,643 

52,942 
186, 673 
204,324 
513,489 

39.89 
50.23 
46.78 
50.90 

81.2 
102.3 

95.3 
103.6 

Total 
(Average ) 

r 

Total 
(Average) 

63 

344,596 

146, 398 

42.48 

86.5 

tlhdw  ii40 

Under  {2 
$2  to  |4 

#4  to  |6 
#6  8:  over 

8 
16 
13 
26 

42,058 

78,533 

66,741 

157,264 

12,564 
36,413 
26,849 
70, 572 

29.87 
46.37 
40.23 
44.87 

60.8 
94.4 
81.9 
91.4 

: 

i 

Total 
(Average ) 

45 

564,871 

277,395 

49. U 

100.0 

j 

Under  $2 
$2  to  i^ 
U   to  $6 
$6  Sc  over 

4 
13 

8 
20 

SI, 900 

162,882 

99,554 

270,535 

15,065 

74,368 

49,140 

138,822 

47.23 
45.66 
49.36 
51.31 

96.2 

9S.0 

100,5 

104.S 

^  to  (80 

; 

Total 
(Average ) 

22 

588,055 

302, 620 

51.46 

104.8 

1 

Iftider  $2 
*2  to  #4 
U   to  t6 
56  tc   over 

2 

e 

7 
7 

58,789 
ISO, 199 
230,716 
168,351 

25, 513 

75,892 

110, 375 

91,040 

43.06 
58.29 
47.84 

S4.oa 

87.7 
118.7 

87,4 
110.1 

480  to  |180 

; 

! 

!   . 

! 

Total 
(Average) 

9 

462,305 

236,016 

51.05 

104.0 

1 

$180  Se  over 

Under  ^ 
Se  to  $4 

*4  to  J6 

$6  &  over 

1 
4 

39,812 
422,493 

17,960 
218,055 

45.11, 
S1.61 

91.9 
105.1 

j 

;    I 

Average  ^9.U 

159 


per  $100  of  total  net  sales,  different 
groups  of  stores  have  been  classified 
according  to  years  and  size.  In  Table 
101,  282  stores  are  classified  by  the 
amounts  of  inventory  per  $100  of 
total  net  sales  and  further  by  the 
amounts  of  fixture  investment  sim- 
ilarly measured.  Certain  aspects  of 
this  table  are  of  interest.  It  should 
be  noted  that  the  stores  are  not  clas- 
sified by  size,  notwithstanding  the  fact 
that  size  is  an  important  element  in 
determining  the  amounts  of  selling 
expense  in  relation  to  total  net  sales. 
To  have  classified  the  stores  by  size 
and  bv  the  methods  used  in  this  table 


would  have  so  distributed  the  data 
as  to  have  made  conclusions  from 
them  difficult,  if  not  impossible. 

In  the  total  section  of  Table  101 
the  amounts  of  selling  expense  in 
terms  of  sales  are  found  to  increase  as 
the  amounts  invested  in  fixtures  in 
relation  to  sales  increase.  To  this 
general  rule  there  is  but  one  exception 
and  that  of  minor  significance.  A 
similar  increase  is  also  observed  in  the 
amounts  of  selling  expense  per  $100 
of  total  net  sales  per  stock  turnover.* 
When  the  stores  are  classified,  as  in 

*  The  method  by  which  this  unit  is  com- 
puted  is  explained  on  page  4,   item   19. 


TABLE  101 

AMOUNT  OF  SELLING  EXPENSE  PER  $100  OF  TOTAL  NET  SALES  PER  STOCK  TURNOVER, 

FOR  STORES  CLASSIFIED  BY  AMOUNT  OF  INVENTORY  PER  $100  OF  TOTAL 

NET    SALES    AND    BY    AMOUNT    OF    FIXTURE    ACCOUNT 

PER    $100    OF    TOTAL    NET    SALES,    1919 


Anciuit    of 
Plxt'ire  Acco'Jiit 

per  JlOO  or 
Total  Net  Sales 

Hunber 

of 
Stores 

Selling  Expanse 

per  SlOO  of  Total  Net  Sales 

Selling  Expense  per  $100  of  Total  Hat  Sales 
per  Stock  Turnover 

luvor.tcry 

per  Jloo  of 

Total 

Ket  Sales 

Amount 

Per  Cent. 

Amount 

Per  Cent. 

20      40 

Graphic 
60      80    100    120    140 

Actual 

Graphic 
D      20      40      60      80    100    120    140    160    180 

Actual 

Total 
(Avera-e) 

262 

$10.16 

100.0 

»4.62 

; 

100.0 

! 

Under  t2 
«2   to   $4 

Utoie 
%6  k  over 

7J 
121 
49 
39 

9.40 

9.33 

10.20 

02.52 

92.5 
91.8 
100.4 
121.3 

3.92 
4.44 

4.86 
5.60 

84.8 
«6.1 
106.2 
121.2 

Total 
(Average) 

! 

— — 

Total 
(Avorigo) 

17 

9.03 

66.9 

2.05 

44.4 

Under  ^ 
*2  to  $4 
U  to   $6 
t6  i   over 

7 

e 

1 
1 

6.53 
9.47 
9.52 
8.45 

83.9 
83. 2 
93.7 
83.2 

2.03 
1.93 
1.90 
2.73 

4St* 

4i.a 

41.1 
59.1 

Hlidcr  {20 

i 

Total 
(Averago ) 

153 

10.75 

106.2 

4.50 

87.4 

1 

Under  J2 
♦2  to  t4 
U  to   #6 
16  k  over 

48 
62 
27 
16 

10. IE 
9.S4 
10.35 
12.99 

■     100.0 
96.9 
101.9 
127.9 

4.23 
4.23 
4.70 
4.81 

9i.e 

»£.« 

101.7 
104.1 

teo  to  tio 

""^^""^ 

''""^^^"'"  i 

i 

! 

i 

Total 
(Averaf^e) 

112 

e.rj.i 

87.0 

6.31 

136.6 

i 

Under  82 
te  to  »4 
»4  to  »6 
te  k  over 

IB 
51 
21 

6.30 

e.'.i 

10.11 

;o.»6 

62.0 

eo.e 

99.5 

us.  8 

4. SO 
S.47 
C.74 

e.v 

97.4 
11B.4 
145.8 

175.8 

UO  t  over 

1 

! 

„ 

, 

Avorbgo  &i.o.i& 


160 


the  remaining  parts  of  the  table,  ac- 
cording to  the  size  of  the  inventory- 
in  relation  to  sales,  the  general, 
though  not  unmistakable,  tendency  is 
for  the  amounts  of  selling  expense  per 
$100  of  total  net  sales  to  increase. 
This  condition  is  clear  for  the  stores 
having  inventories  in  relation  to 
sales  of  $40  and  over,  while  it  is 
doubtful  for  those  having  small  in- 
ventories. 

The  amounts  of  selling  expense  per 
$100  of  total  net  sales  for  stores  clas- 
sified by  the  amounts  of  inventory  in- 
crease and  then  decrease  from  group 
to  group.  The  average  amount  for 
those  having  inventories  of  less  than 
$20  per  $100  of  total  net  sales  is 
$9.03 ;  for  those  with  inventories  of 
$20  to  $40  it  is  $10.79 ;  and  for  those 
with  inventories  of  $40  and  over  it 
is  $8.84.  However,  when  the  amounts 
of  selling  expense  are  computed  per 
$100  of  total  net  sales  per  stock  turn- 
over no  such  uncertainty  exists.  The 
amounts  increase  from  $2.05,  for  the 
stores  having  inventories  of  less  than 
$20,  to  $4.50  for  those  with  inven- 
tories of  $20  to  $40,  and  to  $6.31  for 
those  having  inventories  of  $40  and 
over. 

From  this  table  it  may  be  con- 
cluded: First,  that  the  amounts  of 
selling  expense  on  the  whole  increase 
as  the  amounts  invested  in  fixtures 
per  $100  of  total  net  sales  increase. 
Second,  that  the  amounts  of  selling 
expense  per  $100  of  total  net  sales 
increase  and  then  decrease  with  the 
size  of  the  inventory  per  $100  of  total 
net  sales.  Third,  that  the  amounts 
of  selling  expense  per  $100  of  total 


net  sales  per  stock  turnover  increase 
as  the  amounts  invested  in  fixtures 
per  $100  of  total  net  sales  increase. 
Fourth,  that  the  amounts  of  selling 
expense  per  $100  of  total  net  sales 
per  stock  turnover  increase  as  the 
amounts  of  inventory  per  $100  of 
total  net  sales  increase. 

The  table  not  only  shows  that  sell- 
ing expense,  differently  measured,  in- 
creases or  decreases  for  the  different 
groups  of  stores;  it  also  contains  the 
amounts  of  expenditure.  These  con- 
stitute standards  against  which  mer- 
chants may  check  their  own  business 
experience. 

D. — Yearly  Amounts  of  Selling  Ex- 
pense per  $100  of  Total  Net 
Sales,  for  Stores  Classified  by 
Bates  of  Stock  Turnover,  1919. 

Additional  light  is  thrown  upon  the 
relation  of  the  amounts  of  selling  ex- 
pense to  sales  in  stores  classified  ac- 
cording to  the  amounts  invested  in 
fixtures  when  stores  are  classified  ac- 
cording to  the  rates  at  which  they 
turned  their  stock  during  the  year. 
Such  a  classification  is  contained  in 
Table  102. 

The  total  section  of  this  table  dupli- 
cates the  corresponding  section  of 
Table  101  and  needs  no  further  con- 
sideration. In  the  remaining  part  of 
the  table,  however,  the  stores  are  clas- 
sified differently.  From  this  table  it 
will  be  observed  that  the  amounts  of 
selling  expense  per  $100  of  total  net 
sales  increase  with  the  rapidity  with 
which  the  stock  is  turned.  For  the 
stores  which  turned  their  stock  less 
than  once,  the  amount  is  $7.66;  for 


161 


TABLE  102 

TOTAL   NET   S.U.ES,   SELLING  EXPENSE,   AND  AMOUNT   OF   SELLING  EXPENSE   PER  $100 

OF    TOT.VL    NET    SALES,    FOR    STORES    CLASSIFIED    BY    RATES    OF    STOCK 

TURNOVER   AND    BY   AMOUNT   OF   FIXTURE   ACCOUNT   PER 

$100     OF     TOTAL     NET     SALES,     1919 


Afflount  of 
Flxtiir*  Account 

per  »100  of 
Total  Ket  Sales 

Waiber 

of 
Stores 

Total 
Net  Sales 

Selling  Expense  per  #100  of  Total  Ket  Sales 

Rates  of 

Total 
Selling 
Expense 

Amount 

C 

Per  Cent. 

Turnover 

Graphic                             [Actual 
20     40     60     80  100  120  140 

* 

Total 
(Average) 

282 

$35,563,014 

$3,611,688 

$10.16 

100.0 

Doder  $2 
|2  to  $4 
^   to  »6 

J6  fc  over 

73 
121 

49 
39 

9,563,956 
12,441,186 
5,636,955 
7,920,917 

899,465 

1,161,144 

574,841 

976,238 

9.40 

9.33 

10.20 

12.32 

92.5 
91.8 
100.4 
121.3 

Total 
(Average) 

' 

Total 
(Average ) 

9 

601, 109 

46,065 

7.66 

! 

75.4 

. 

Dnder  |2 
$2  to  $4 
|4  to  |6 
$6  &  ovei 

4 
2 
2 

1 

372,130 
121,583 
78,153 
29,243 

30,358 
6,940 
7,231 
1,534 

8.16 
6.71 
9.25 
S.2S 

1 

80.3 
56.2 
91.0 
51.7 

'Uhder  1 

1 

Total 
(Average) 

136 

11,010,775 

1,057,084 

9.60 

94.6 

Onder  |2 
*2  to  U 

t*  to  ie 

$6  &  over 

26 
62 
25 
23 

2,115,399 
4,560,251 
2,054,966 
2,280,159 

199,292 

404,920 
220,589 
232,283 

9.42 
8.88 
10.73 
10.19 

92.7 
87.4 
105,6 
100.3 

1  to  2 

■ 

Total 
(Average] 

100 

15,987,018 

1,694,631 

10.60 

104.3 

i 

Under  $2 
$2  to  $4 
$4  to  t6 

$6  &  over 

29 
44 
16 
11 

3,428,161 
5,458,218 
2,289,463 
4,811, 176 

300,903 
501,163 
236,457 
656,108 

8.78 

9.18 

10.33 

13.64 

86.4 

90.4 

101.7 

134.3 

8  to  3 

; 

' 

^^^^^^^^ 

Total 
(Average ) 

37 

7,964,112 

813,910 

10.22 

100.6 

Under  $2 
♦2  to  $4 
»4  to  $6 
$6  &  over 

14 

13 
6 
4 

3,648,266 

2,301,134 

1,214,373 

800,339 

368,912 
248,121 
110,564 
86,313 

10.11 

10.78 
9.10 
10.78 

99,5 
106.1 

89.6 
106.1 

5  &  over 

1 

Average  $10.16 


162 


those  which  turned  their  stock  be- 
tween one  and  two  times,  it  is  $9.60; 
for  those  that  turned  their  stock  be- 
tween two  and  three  times,  it  is 
$10.60;  and  for  those  which  turned 
their  stock  three  times  or  more  during 
the  year,  it  is  $10.22.  That  is,  the 
amounts  of  selling  expense  over  the 
whole  range  of  groups  increase  with 
the  rapidity  of  stock  turnover.  This, 
in  part,  is  another  way  of  saying  that 
selling  expense  per  $100  of  total  net 
sales  increases  with  the  size  of  the 
store,  inasmuch  as  the  rates  of  stock 
turnover  vary  directly  with  the  size  of 
the  store.  Chief  interest,  however,  in 
this  table  lies  in  the  relative  size  of 
the  amounts  of  selling  expense  for 
stores  with  different  investments  in 
fixtures  in  relation  to  sales  but  with 
similar  stock  turns.  Comparisons 
which  develop  these  relations  are  con- 
tained in  the  body  of  the  table. 

For  purposes  of  analysis,  the  single 
group  of  stores  which  turned  their 
stock  from  two  to  three  times  may  be 
used.  As  the  amounts  of  investment 
in  fixtures  in  terms  of  sales  increase, 
the  amounts  of  selling  expense  in  re- 
lation to  sales  also  increase.  For 
those  stores  having  fixture  invest- 
ments of  less  than  $2,  the  amount  is 
$8.78;  for  those  with  fixture  invest- 
ments of  $2  to  $4,  it  is  $9.18;  for 
those  with  fixture  investments  of  $4 
to  $6,  $10.33 ;  and  for  those  with  fix- 
ture investments  of  $6  and  over, 
$13.64.  The  tendency  for  this  group 
of  stores  is  rather  more  definite  than 
for  the  other  groups  in  the  table.  The 
direction  of  change,  however,  is  gen- 
erally the  same. 


In  this  table  no  attention  is  given 
to  the  size  of  the  store.  To  have 
classified  these  stores  in  the  detail  con- 
tained in  Table  101  and  in  addition 
by  size  of  store  would  have  unduly 
complicated  the  arrangement.  Table 
102  should  be  considered,  however, 
with  this  limitation  in  mind.  Its  value 
consists  in  the  norms  of  expense  dis- 
tribution which  are  set  up  for  stores 
operating  under  different  conditions. 
These  serve  as  guides  to  merchants  in 
judging  the  amounts  of  their  own  ex- 
penditures. They  are  submitted  for 
what  they  are  worth  and  not  as  proof 
unmistakable  that  a  causal  connection 
between  amounts  of  selling  expense, 
rates  of  stock  turnover,  and  invest- 
ments in  fixtures  has  been  estab- 
lished. 

E. — Summary. 

(1).  For  stores  with  a  given 
amount  of  investment  in  fix- 
tures per  $100  of  total  net 
sales,  the  amounts  of  selling 
expense  in  terms  of  sales  de- 
creased from  1914  to  1918, 
and  1918  to  1919.  This  is 
true  for  all  stores  and  for  the 
stores  classified  by  size. 

(2).  For  stores  of  a  given  size, 
amounts  of  selling  expense 
per  $100  of  total  net  sales  in- 
crease as  the  amounts  of  the 
fixture  investment  per  $100 
of  total  net  sales  increase. 

(3).  When  stores  are  classified  by 
the  size  of  their  fixture  invest- 
ment  per   $100   of  total  net 


163 


sales,  the  amounts  of  selling 
expense  per  $100  of  total  net 
sales  increase  as  the  stores  in- 
crease in  size. 

(4).  For  stores  with  a  given 
amount  invested  in  fixtures  in 
terms  of  sales,  the  proportions 
of  total  expense  attributable 
to  selling  increased  between 
1914  and  1918,  and  1918  and 
1919. 

(5).  When  stores  are  classified  by- 
size,  the  amounts  of  selling 
expense  per  $100  of  total  ex- 
pense tend  neither  to  increase 
nor  to  decrease  regularly  as 
investments  in  fixtures  in- 
crease. 

(6).  For  stores  with  a  given  in- 
vestment in  fixtures,  the 
amounts  of  selling  expense  per 
$100  of  total  expense  increase 
as  the  stores  increase  in  size. 

(7).  When  stores  are  classified 
either  by  amounts  of  inven- 
tory in  terms  of  sales  or  by 
rates  of  stock  turnover,  sell- 
ing expenses  measured  in 
terms  of  sales  alone  or  of  sales 
per  stock  turnover  increase  as 
the  investments  in  fixtures  per 
$100  of  total  net  sales  in- 
crease. 

(8).  For  stores  with  a  given  in- 
vestment in  fixtures  per  $100 
of  total  net  sales,  the  amounts 
of  selling  expense  in  terms  of 
sales  increase  as  the  rates  of 
stock  turnover  increase. 


(3) — YEARLY  AMOUNTS  OP  SELLING 
EXPENSE  IN  RELATION  TO  INVEST- 
MENTS IJJ  FIXTURES  PER  100 
SQUARE  FEET  OP  FLOOR  SPACE. 

A, — Yearly  Amounts  of  Selling  Ex- 
pense per  100  Square  Feet  of 
Floor  Space  and  per  $100  of  Total 
Net  Sales,  for  Stores  Classified 
hy  Size,  1919. 

It  is  shown  in  Table  75  that  stores 
of  a  given  size  which  pay  high  rent 
per  unit  of  floor  space  utilize  rela- 
tively small  amounts  of  space.  A 
similar  condition  obtains  for  stores 
which  have  large  amounts  invested  in 
fixtures  per  100  square  feet  of  floor 
space.  The  present  discussion  has  to 
do  with  amounts  of  selling  expense  in 
terms  of  sales  and  in  terms  of  the 
amounts  sold  per  square  foot  of  floor 
space  for  stores  classified  according 
to  their  investments  in  fixtures. 

Table  103  shows  for  303  stores,  clas- 
sified by  size  and  by  amounts  invested 
in  fixtures  per  100  square  feet  of  floor 
space,  the  average  amounts  of  floor 
space  used  per  store  and  the  average 
amounts  of  selling  expense  per  square 
foot  of  floor  space.  The  body  of  the 
table  rather  than  the  total  is  of  chief 
interest.  The  meaning  of  the  details 
which  it  contains  may  be  illustrated 
by  selecting  stores  with  sales  of  $80,- 
000  to  $180,000.  The  average  amount 
of  selling  expense  per  store  for  the 
102  stores  is  $11,513  and  the  average 
amount  of  floor  space  in  square  feet 
is  5,012.  As  the  amounts  invested  in 
fixtures  per  100  square  feet  of  floor 
space  increase  for  this  group  of  stores, 


164 


the  amounts  of  floor  space  utilized  de- 
crease. For  the  stores  having  the 
smallest  amount  invested  in  fixtures 
in  relation  to  floor  space,  the  amount 
of  floor  space  utilized  is  6,374  square 
feet  and  from  this  as  a  maximum  it 


decreases  to  3,717  for  stores  which 
have  investments  in  fixtures  of  $120 
and  over  for  each  100  square  feet  of 
floor  space.  There  is  no  definite  ten- 
dency, on  the  other  hand,  for  the 
amounts  of  selling  expense  per  store 


TABLE  103 

AMOUNT  OF  SELLING  EXPENSE  AND  FLOOR  SPACE  PER  STORE  AND  AMOUNT  OF  SELLING 

EXPENSE  PER  100  SQUARE  FEET  OF  FLOOR  SPACE,  FOR  STORES  CLASSIFIED 

BY    SIZE    AND    BY    AMOUNT    OF    FIXTURE    ACCOUNT    PER 

100    SQUARE   FEET   OF    FLOOR   SPACE,    1919 


Araoxjnt  of 
Fixture  Account 
per  100  BO.  ft. 
of  Floor  Space 

Nujrber 

cf 
Stores 

Floor  f^pAre 
per  Stcro 
(sq.   ft.) 

rolling 
E^rper.se 
per  Store 

Selling  Expense  per  100  Square  Feet  of  Floor  Space 

Clacclfied 
Total 

Ajnount 

fer  Cent. 

(in  OOO's) 

Graphic 
3      20      4p      60      80   100   120   140   160   1^0   200 

Actual 

Total 
(Average ) 

503 

4,694 

$U,866 

$262.79 

^^^ 

100.0 

"""* 

Totnl 
(Avercige) 

Oader  $40 
^40  to     »80 
♦80  to  tl20 

tl20  k  over 

74 

105 

63 

61 

5,215 
5.964 
4,141 

S,891 

7,844 
8,314 
10,906 
23,652 

150.41 
209.74 
263.57 
404.89 

1— 

59.5 
83.0 
104.2 
160.2 

1 
1 

i 

.       \ 
\ 

i 

■ 

• 

Total 
(Average) 

45 

2,171 

2,010 

92.68 

36.6 

DDder  Uo 

nnder  $40 
$40  to     SSO 
$80  to  $120 

$120  k  over 

U 
24 

S 

7 

2,764 
2,118 
2,100 
1,456 

1,499 
2,095 
2,256 
2,424 

54.23 
98.91 
106.48 
166.43 

21.6 
39.1 
42.1 
65.9 

Total 
(Average ) 

US 

5,080 

4*102 

133.18 

52.7 

$40  to  #60 

Under  $40 
$40  to     $80 
$80  to  $120 

$120  k  ovor 

53 

42 

25 

15 

5,786 
2,834 
2,559 
3,014 

3,828 
3,669 
4,729 
4,959 

101. U 
129.46 
184.80 
164.53 

40.0 
51.2 
75.1 
65.1 

Total 
(Average) 

102 

5,012 

11,513 

229.71 

! 

90.9 

■ 

$80  to  iiao 

Ojder  $40 
$40  to     $80 
$80  to  $120 

$120  k  over 

22 
53 
29- 

IS 

6,574 
6,354 

4,394 
5,717 

10,640 
12,427 
10,613 
12,480 

166.36 
252,11 
241.53 
335.75 

65.4 

■     91.8 

95.5 

152.8 

"""" 

^^^ 

Total 
(Average ) 

43 

10,825 

43,419 

401.17 

158.7 

J 

Under  $40 
$40  to     $80 
680  to  $120 

$120  k  over 

8 

6 

8 

21 

11,296 
11,609 
8,659 
11,289 

25,717 
43,080 
32,978 
54,237 

227.66 
371.09 

585.20 
480.44 



90.1 
146.8 
152.8 
190.1 

4180  &  ovar 

. 

. 

Average  |26£.79 


165 


to  increase  or  to  decrease  as  the  fix- 
ture investments  per  unit  of  floor 
space  increase. 

The  table  also  shows  for  each  group 
of  stores,  classified  by  size,  the 
amounts  of  selling  expense  per  100 
square  feet  of  floor  space.  For  the 
group  of  stores  under  consideration, 
the  average  was  $229.71.  For  the 
stores  with  the  smallest  amount  in- 
vested in  fixtures  per  100  square  feet 
of  floor  space,  the  corresponding 
amount  was  $165.36,  and  from  this 
as  a  minimum  the  amounts  increase 
as  the  fixture  investments  increase. 
For  those  stores  which  had  $120  and 
over  invested  in  fixtures,  measured  in 
this  manner,  the  selling  expense  per 
100  square  feet  of  floor  space  was 
$335.75. 

The  tendencies  for  the  amounts  of 
selling  expense  per  store,  floor  space 
per  store,  and  selling  expense  per  100 
square  feet  of  floor  space,  to  increase 
or  decrease  vnth  investments  in  fix- 
tures is  not  so  certain  in  the  other 
groups  of  stores.  Generally  speaking, 
however,  the  conditions  noted  above 
for  this  group  also  characterize  the 
others. 

Table  104  shows  the  amounts  of 
selling  expense  per  $100  of  total  net 
sales  and  per  $100  of  total  net  sales 
for  the  amount  sold  for  each  square 
foot  of  floor  space.*  The  details  of 
this  table  are  of  interest.  Within 
each  group  of  stores,  when  classified 
by  size,  certain  unmistakable  tenden- 
cies in  these  amounts  seem  to  be 
present.     First,  the  amounts  of  sell- 

*  The  method  by  which  this  unit  is  com- 
puted is  explained  on  page  4,  item  25. 


ing  expense  per  $100  of  total  net  sales 
increase  as  the  amounts  invested  in 
fixtures  per  unit  of  floor  space  in- 
crease. To  this  general  rule  there 
are  occasional  exceptions,  but  these 
are  insufficient  to  alter  the  conclusion. 
"When  the  amounts  of  selling  expense 
per  $100  of  total  net  sales  for  the 
amount  sold  on  each  square  foot  of 
floor  space  are  determined,  they  seem 
on  the  whole  to  decrease  for  each 
group  of  stores  as  the  fixture  invest- 
ments per  $100  of  total  net  sales  in- 
crease. That  is,  an  inverse  relation- 
ship between  the  amounts  expressed 
in  this  form  and  in  selling  expense  in 
terms  of  sales  alone  is  set  up.  One 
may  conclude,  in  spite  of  the  fact  that 
the  amounts  of  selling  expense  per 
$100  of  total  net  sales  increase  with 
the  amounts  invested  in  fixtures  per 
100  square  feet  of  floor  space,  that 
this  disadvantage  is  overcome  because 
of  the  diminished  amount  of  floor 
space  involved.  That  is,  the  sales  per 
unit  of  floor  space,  in  the  stores  hav- 
ing large  amounts  invested  in  fixtures, 
overcome  the  disadvantage  under 
which  stores  operate  so  far  as  selling 
expense  alone  is  concerned. 

Tables  104  and  105  not  only  estab- 
lish more  or  less  definitely  certain 
tendencies  of  change  in  expense  ratios, 
but  also  set  up  standards  against 
which  merchants  may  judge  their 
own  costs  measured  in  the  units  em- 
ployed. 

Table  105  contains  the  data  found 
in  Table  104,  but  rearranged  so  as  to 
facilitate  comparisons  of  selling  ex- 
pense per  $100  of  total  net  sales  and 
per  $100  of  sales  for  the  amoiuit  sold 


166 


TABLE  104 


AMOUNT  OF  SELLING  EXPENSE  PER  $100  OF  TOTAL  NET  SALES  PER  SALES  PER  SQUARE 

FOOT  OF  FLOOR  SPACE,  FOR  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT  OF 

FIXTURE  ACCOUNT  PER   100   SQUARE  FEET  OF   FLOOR   SPACE,    1919 


Afflount  of 
Fixture  Account 
per  100  eq.  ft, 
of  Floor  Space 

Snaiber 

of 
Btoxos 

Belling  Expense  per  $100  of  Total  Ret  Sales 

Selling  Sxpenae  per  $100  of  Total  Net  Sales  per 
Soles  per  Square  Foot  of  Floor  Space 

Claasiriad 

Total 
Set  Sales 
(In  OOO'o) 

Anctmt 

Per  Cent. 

Amount 

Per  Cent. 

Graphic 
>  20  «  60  80  100  120  140 

Actual 

Graphic 
3  20  40  60  80  100  120  140  160 

Actual 

Total 
(Average) 

SOS 

$9.93 

1 

100.0 

$0.59 

1 

Dnder  $40 
$40  to  $80 
$80  to  $120 

$120  4  over 

74 
105 
65 
61 

e.6S 
9.54 
9.67 
11.09 

86.8 

96.1 

97.4 

111.7 

0.48 
0.43 
0.56 
0.50 

" 

Total 

""           I 

i 
J 

1 

Total 
(Average ) 

45 

6. 46 

66.1 

0.45 

lis  .4 

Under  $40 
$40  to  $80 
{80  to  $120 

$120  i  over 

U 
24 
S 

7 

6.55 
6.50 
7.99 
7. 15 

S$.9 
65.5 
74.4 
71.8 

0.S7 
0.45 
0.51 
0.31 

146.2 
110.» 
130.8 
79.5 

Under  $40 

1 
I 

i 

Total 
(Average) 

113 

7.13 

71.8 

0.38 

97.4 

1 

Under  $40 
$40  to  $8» 
$80  to  $120 

$120  &  over 

33 
42 
25 
15 

6.75 
6.42 
7.80 
6.85 

63.1 
54.7 
78.5 
89.1 

0.45 
0.32 
0.33 
0.48 

11S.4 
82.1 
84.9. 

125.1 

$40  to  $80 

' 

...        ' 

[ 

Total 
(Average ) 

103 

9.80 

98.7 

0.42 

107.7 

! 

1 

■  Under  $40 
$40  to  $80 
^0  to  $120 
$120  *  over 

zz 

93 
28 
18 

9.10 

10. sa 

9.47 

10.04 

81.6 
104.5 

95.4 
101.1 

0.50 

0.46 
0.57 
0.50 

I28.e 

U7.9 
94.9 
76.9 

$80  to  C180 

^^tm^mmm ' 

1 

Total 
(Average ) 

49 

11.45 

115. S 

0.35 

84.6 

i 

Under  $40 
$40  to  $80 
$80  to  $120 

$120  &  over 

e 

6 
8 
21 

9.79 
12.73 
11.14 
11.61 

98.6 
128.2 
112.2 
U6.9 

0.42 
0.44 
0.52 
0.28 

107.7 
112.8 
82.1 
71.8 

$1S0  &  over 

ATerege  $9.93 


Averaee  $0.58 


on  each  square  foot  of  floor  space  for 
stores  of  different  size,  but  with  the 
same  amounts  invested  in  fixtures.  A 
moment's  consideration  of  its  eon- 
tents  may  be  of  interest. 

For  each  group  of  stores,  when 
classified  by  the  amounts  of  fixture  in- 
vestments per  unit  of  floor  space,  the 
amounts  of  selling  expense  per  $100 


of  total  net  sales  increase  as  the  size 
of  the  stores  increases.  They  also 
increase  as  the  amounts  of  fixture 
investment  in  relation  to  floor  space 
increase.  The  amounts  of  selling  ex- 
pense per  $100  of  sales  for  the  amount 
sold  on  each  square  foot  of  floor  space, 
for  each  of  the  groups  of  stores  as 
classified,  however,  generally  tend  to 


167 


decrease  as  the  size  of  the  stores  in- 
creases, and  as  the  size  of  the  invest- 
ments in  fixtures  increases.  This  table 
confirms  the  conclusion  drawn  from 
Table  10-1  that,  while  amounts  of  sell- 
ing expense  are  generally  high  in 
terms  of  sales  for  stores  having  large 
investments  in  fixtures  per  100  square 


feet  of  floor  space,  they  are  relatively 
low  when  they  are  expressed  in  terms 
of  the  utilization  of  the  floor  space. 

The  association  between  large 
amounts  of  selling  expense  per  $100 
of  total  net  sales  and  large  invest- 
ments in  fixtures  per  100  square  feet 
of  floor  space  is  brought  out  in  Table 


TABLE  105 

AMOUNT  OF  SELLING  EXPENSE  PER  $100  OF  TOTxVL  NET  SALES  PER  SALES  PER  SQUARE 

FOOT  OF  FLOOR  SPACE,  FOR  STORES  CLASSIFIED  BY  AMOUNT  OF  FIXTURE 

ACCOUNT     PER     100     SQUARE     FEET     OF     FLOOR     SPACE 

AND     BY     SIZE     OF     STORE,     1919 


iBcyszt  of 
Plxtura  AccDiijit 
per  100  »q.   rt, 
of  Floor  Sp«ce 


Clasalflsd 

Total 
Net  Sales 
(In  OOO'b) 


Selling  Sxpenae  par  $100  of  Total  Bat  Salea 


Grapillo  I   Actual 

0      20      40      60      80    100   120   140 


Graphic  |  Actual. 

40     60     60  100  120   140   160 


DBder  |40 
ftO  to     )80 
tSO  to  $180 

tlSO  h  over 


Under  $40 


Dcder  $40 
$40  to     $80 
$80  to  $1S0 

$180  fc  orer 


Under  $40 
$40  to  $80 
$00  to  $180 

$180  h   over 


$80  to  $180 


Under  $40 
$40  to  $80 
$80  to  $180 

$180  k  over 


Total 
(Average ) 


$180  A  over 


Under  $40 
$40  to     $60 
$80  to  $180 

$1£0  ft  over 


$9.93 

6.46 
7.13 
9.80 
U.43 


8.S2 


s.ss 

6.7S 
».10 
8.79 


9. 54 


6.50 
6.42 
10.30 
12.73 


9.67 


7.59 

7.80 
9.47 
11.14 


11.09 


7.13 
8.85 
10.04 
11.61 


Avorags  $?.9S 


100.0 


65.1 
71.8 
98.7 
115.3 


85.8 


ss.g 

ee.i 

91.6 
S8.6 


96,1 


65.5 
64.7 

104.5 
128.2 


87.4 


74.4 

78.5 

es.4 

112.2 


1U.7 

71.8 
89.1 
101.1 
116.8 


$0.39 


0.43 
0.38 
0.42 
0.33 


0.43 


0.57 
0.45 
0.5O 
0.42 


0.43 


0.43 
0.32 

0.49 
0.44 


0.51 
0.S3 
0.37 
0.32 


0.30 

0.31 
0.48 
0.30 
0.28 


Averaee  So.Si^ 


100.0 


115.4 
9T.4 

107.7 
84. S 


123.1 


146.2 
115.4 
128.2 
107.7 


110.3 


U0.3 
82.1 
117.9 
112.6 


92.3 

130.8 
84.8 
94.9 
82.1 


76.9 

79.8 
123.1 
76.9 
71,.  8 


168 


106.  For  each  group  of  stores,  when 
classified  by  size,  the  amounts  in- 
vested in  fixtures  per  unit  of  floor 
space  are  larger  for  the  stores  having 
large,   than   for   those   having   small 


amounts  of  selling  expense  in  terms 
of  sales.  An  inspection  of  this  table 
will  reveal  only  one  exception  to  the 
general  rule  and  this  is  based  upon 
only  one  store. 


TABLE  106 

FLOOR  SPACE,  FIXTURE  ACCOUNT,  AND  AMOUNT  OF  FIXTURE  ACCOUNT  PER  100  SQUARE 

FEET  OF  FLOOR  SPACE,  FOR  STORES  CLASSIFIED  BY   SIZE  AND   BY  AMOUNT 

OF   SELLING   EXPENSE   PER   $100   OF   TOTAL    NET   SALES,    1919 


Amoxjnt  of 

Selling 

Expense 

per  $100  of 

Total 

Net  Sales 

Number 

of 
Stores 

Floor  Space 
(sq.  ft.) 

ABount  of 
Fixture 

Account 

Amount  of  Plxtiire  Account  per  100  aq. 
of  Floor  Space 

ft. 

Total 
Net  Sales 
(In  OOO's) 

Amount 

C 

Per  Cent. 

Graphic 
)  20   40   60  80  100  120  140  16C 

Actual 

Total 
(Average ) 

303 

1,422,359 

$1,326,406 

$93.25 

^^^^^^^i 

100.0 

Total 
(Average) 

Under  $6 

$6  to  $12 
$12  i  over 

85 

163 

55 

224,662 
628,792 
368,905 

139,386 
767,735 
419,285 

62.04 
92.63 

113.66 

66. S 

99.3 

121.9 

Total 
(Average) 

45 

97,716 

56, 181 

57.49 

1 

61.7 

Under  $40 

Under  $6 

$6  to  $12 
$12  &  over 

20 
22 

3 

41,754 
44,502 
11,460 

17,694 

32,360 

6,127 

42.38 
72.72 
53.46 

45.4 

i 

57.3 

Total 
(Average ) 

113 

347,999 

209,385 

60.17 

64.5 

$40  to  $80 

Under  $6 

$6  to  $12 
$12  S:  over 

49 
54 
10 

135,553 

180,121 

32,320 

78,399 

105,227 

25,75:^ 

57.83 
58.42 
79.70 

62.0 
62.6 
85. S 

Total 
(Average) 

102 

511,239 

403,538 

79.91 

$80  to  $180 

Under  $6 

$6  to  $12 
$12  k  over 

15 

61 
26 

45,475 
317,017 
148,747 

35,454 
247,450 
125,534 

77.96 

78.05 
84.46 

63.6 
83.7 
90.6 

: 

! 

Total 
(Average) 

43 

465,405 

652,302 

140.15 

150.3 

llSO  h   over 

Under  $6 

$6  to  $12 
$12  &  over 

1 
25 
16 

1,875 
287,152 
176,378 

7,839 
332,698 
261,765 

418.03 
133.27 
148.41 

448.3* 

142.9 

159.2 

Average  $93.25 

*Full  length  r 

ot  shovs. 

169 


B. — Summary. 

(1).  The  amounts  of  selling  ex- 
pense per  100  square  feet  of 
floor  space  and  per  $100  of 
total  net  sales  increase  as  the 
investments  in  fixtures  per  100 
square  feet  of  floor  space  in- 
crease. This  is  true  for  all 
stores  and  for  stores  of  a 
given  size. 

(2).  The  amounts  of  selling  ex- 
pense per  $100  of  total  net 
sales  for  the  amount  sold  per 
square  foot  of  floor  space  de- 
crease as  the  investments  in 
fixtures  per  100  square  feet 
of  floor  space  increase.  This 
holds  for  all  stores  and  for 
stores  classified  by  size. 

(3).  For  stores  with  a  given 
amount  invested  in  fixtures 
per  100  square  feet  of  floor 
space,  the  amounts  of  selling 
expense  in  terms  of  sales  alone 
increase,  while  in  terms  of 
both  sales  and  amount  sold 
per  unit  of  floor  space  they 
decrease,  as  the  stores  in- 
crease in  size. 

5. — YEARLY  AMOUNTS  OF  SELLING  EX- 
PENSE IN  RELATION  TO  EXPENDI- 
TURES FOR  ADVERTISING,  FOR  STORES 
CLASSIFIED  BY  YEARS,  BY  SIZE,  AND 
BY  LOCATION. 

The  term  "advertising"  as  used  in 
this  section  includes  expenditures  for 
the  different  methods  of  advertising 
such  as  newspapers,  billboards,  etc.,* 

*  See  the  questionnaire  in  Volume  VI, 
page  597,  of  the  Bureau's  study  of  Costs, 
Merchandising  Practices,  Advertising  cmd 
Sales  in  the  Retail  Distribution  of  Clothing. 


as  well  as  the  salaries  of  the  advertis- 
ing employees,  such  as  window  trim- 
mers and  advertising  men.  The  stores 
which  are  studied  in  this  section  are 
classified  for  the  years  in  question  by 
the  amounts  of  advertising  expen- 
ditures in  relation  to  sales.  Both 
simple  and  complex  units  of  measure- 
ment,! of  the  same  general  type  as 
those  which  have  already  been  used, 
are  employed. 

In  the  following  discussion,  chief 
emphasis  is  given  to  the  conditions  in 
1919,  although  for  a  limited  group  of 
stores,  comparisons  are  made  between 
the  increases  in  total  net  sales  and 
selling  expense  for  the  years  1914, 
1918,  and  1919,  The  order  in  which 
these  topics  are  discussed  is  essen- 
tially that  used  in  the  foregoing  sec- 
tions. 

A. — Yearly  Amounts  of  Selling  Ex- 
pense per  $100  of  Total  Net 
Sales  and  per  $100  of  Total  Ex- 
pense, for  Stores  Classified  by 
Size,  1919,  1918,  and  1914. 

Table  107  shows  the  amounts  of 
selling  expense  per  $100  of  total  net 
sales  in  1919  for  282  stores  classified 
by  size  and  by  the  amounts  expended 
for  advertising  in  relation  to  sales. 
It  also  shows  the  amounts  of  selling 
expense  per  $1  of  advertising  for  the 
stores  similarly  classified. 

It  is  hardly  necessary  to  call  atten- 
tion to  the  fact,  so  often  noticed  be- 
fore, that  the  amounts  of  selling  ex- 
pense per  $100  of  total  net  sales  in- 
crease as  the  stores  increase  in  size. 

f  The  methods  by  which  these  are  com- 
puted are  explained  on  page  4. 


170 


The  amounts  in  which  chief  interest 
now  lies  are  those  for  stores  with  dif- 
ferent amounts  spent  for  advertising 
per  $100  of  total  net  sales.  It  will 
be  seen  from  Table  107  that  for  all 
the  stores  and  for  each  group,  when 
classified  by  size,  the  amounts  of  sell- 
ing expense  per  $100  of  total  net  sales 
increase  as  the  amounts  expended  for 
advertising,  similarly  expressed,  in- 
crease.   For  the  79  stores  which  spent 


less  than  $1  for  advertising  per  $100 
of  total  net  sales,  it  cost,  in  1919, 
$7.07  to  sell  $100  worth  of  goods. 
For  those  which  spent  from  $1  to  $2 
for  each  $100  of  sales,  the  correspond- 
ing figure  was  $8.46.  For  the  stores 
spending  amounts  larger  than  $2  for 
advertising  per  $100  of  total  net  sales, 
the  costs  of  selling,  similarly  meas- 
ured, were  even  higher.  How  large 
they  are  for  the  stores  as  classified, 


TABLE  107 

AMOUNT    OF    SELLING    EXPENSE    PER    $100    OF    TOTAL    NET    SALES    AND    PER    $1    OF 

ADVERTISING,    FOR   STORES   CLASSIFIED   BY    SIZE   AND    BY   AMOUNT   OF 

ADVERTISING  PER  $100   OF   TOTAL   NET  SALES,    1919 


AncTmt  of 

Aivortlalne 

par  tlOO  of 

Total 

Kot  Ealoa 

KTBTbaP 

of 
Storea 

Eelllae  Eipensa  par  tlOO  of  Total  Bat  Salaa 

SalUng  Exponaa  par  ll  of  Advertialjig 

Total 
Sat  ialoa 
(In  OOO'e) 

AnouBt 

l*.-  Cant. 

Amount 

Pap  Oant. 

Oraphlo                        1   ^,j^ 
0     20     40     60     60   lOO   120  140 

*»»"•                                     1    Aetnal 
0     20     40     $0     80   100   120  140   160  180  200  220 

Total 
(AToraga) 

232 

tl0.16 

100.0 

$4.81 

100.0 

1 

OtuJar  fl 
ill  to  »2 
12  to»S 
»3t  OTor 

79 
100 
68 
S7 

7.07 
8.46 
11.62 
12.55 

69.8 

es.s 

Ut.4 

121.6 

13.29 
6.82 
4.70 
3.02 

294,6» 
129.0 
104.2 
67.0 

Iota! 
<A«raso) 

! 

1 
1 

Total 
(AT«r>«») 

.    SS 

6.00 

69.1 

S.U 

IIS.S 

aid<r«l 

»i  tote 

»2  tots 
ys  t  oTar 

IS 

1« 

e 

2 

f.Ol 
7.12 
B.27 
7.U 

49.S 

70.1 
61.9 
70.0 

8.81 
S.35 
2.15 
£.06 

196.3 
IIS.S 
47.T 
46.7 

(tadar  UO 

Total 
(Araraga ) 

106 

7.45 

7S.8 

S.44 

120.8 

mdar  tl 
«1  to  (»2 
12  to»S 
«S  »  OTor 

4S 
S7 
20 
6 

6.77 
7.S* 
S.S2 
1S.25 

se.s 

72.2 
91.7 
130.2 

10.06 
6.S5 
4.01 
S«69 

223.1 

iis.a 
ee.a 

81.8 

Ho  to  Ireo 

'  : 

i 

latal 
(AToraga) 

98 

10  .16 

100.0 

6,07 

112.4 

OulaF  $1 
ftl  ta«e 
fIZ  to  »9 
its  k  OTar 

IS 
3» 
26 
IS 

8,74 
S.47 
U.6S 
IS.OZ 

86.0 
83.4 

U4.6 
129.1 

1S.4S 
8.72 
4.89 
3.17 

343.«* 

126.8 
108.4 
70.3 

(teO  ts  KIBO 

; 

1 
i 

Total 
(ATar««a) 

«S 

U.S6 

111.8 

4.06 

90.0 

Oidar  $1 
Itl  to  »S 
0*  to  »3 
«•  k  oiar 

s 
u 

IS 

1« 

7.B2 
9.56 
12.07 
12.12 

78.0 
92.1 

ua.8 

119.S 

22.89 
6. S3 
4.73 
2.94 

607.5* 
140.4 
104.9 
65.2 

(rlBS  &  OTrr 

1 

AT*r«c*  (lo.ie 


Anr«««  (4.SJ 


Poll  longth  not  aboiD 


171 


as  ■well  as  the  direction  of  change 
from  group  to  group  may  be  observed 
by  consulting  Table  107. 

The  section  of  Table  107  which 
shows  the  amounts  of  selling  expense 
per  $1  of  advertising  presents  a  some- 
what different  picture.  For  all  the 
stores,  irrespective  of  size,  the  average 
amount  of  selling  expense  per  $1  of 
advertising  was  $4.51.  Over  the 
whole  range  of  store  sizes,  the  amounts 
decrease  as  the  stores  increase  in  size. 
"Within  each  group  of  stores,  when 
classified  by  size,  moreover,  the 
amounts  rapidly  decrease  as  the  ex- 
penditures for  advertising  per  $100 
of  total  net  sales  increase.  That  is, 
using  for  illustrative  purposes  the  106 
stores  with  annual  sales  of  $40,000 
to  $80,000,  it  costs  $5.44  in  selling 
expense  for  each  $1  of  advertising  to 
sell  $100  worth  of  goods.  "When  the 
expenditure  for  advertising  is  less 
than  $1  per  $100  of  total  net  sales, 
the  corresponding  selling  expense  is 
$10.06,  and  from  this  as  a  maximum, 
the  amounts  decrease  to  $3.69  for  the 
6  stares  which  spent  for  advertising 
in  relation  to  their  sales  $2  and  over. 
The  same  tendency  for  the  amounts 
to  decrease  characterizes  each  group 
of  stores.  Both  the  direction  of 
change  and  the  amounts  of  expendi- 
ture expressed  in  this  unit  may  be 
found  by  consulting  the  table. 

As  has  been  observed,  the  amounts 
of  selling  expense  per  $100  of  total 
net  sales  are  relatively  high  for  the 
large  stores.  Moreover,  advertising 
expenditures  per  $100  of  total  net 
sales  are  also  relatively  high  for  the 
large    stores.       This    association    is 


brought  out  in  Table  108  which  shows 
the  amounts  of  advertising  expendi- 
tures per  $100  of  total  net  sales  for 
stores  classified  according  to  amounts 
of  selling  expense  in  relation  to  sales. 
It  will  be  seen  from  this  table  that, 
as  the  stores  increase  in  size,  the  ad- 
vertising expenditures  in  terms  of 
sales  increase  and  that  for  stores  of 
given  size,  the  amounts  of  advertising 
expense  per  $100  of  total  net  sales 
increase  as  the  selling  expenses,  simi- 
larly measured,  increase.  This  is  to 
be  expected  in  view  of  the  fact  that 
advertising  expenditure  is  a  part  of 
total  selling  expense.  The  purpose  of 
the  table  is  to  show  the  amounts  spent 
for  this  purpose  and  the  tendencies 
for  them  to  change  in  each  of  the 
different  store-groups. 

Another  approach  to  the  study  of 
selling  expense  per  $100  of  total  net 
sales  in  relation  to  amounts  of  adver- 
tising, similarly  expressed,  is  found 
in  Table  109.  Only  one  part  of  the 
table  seems  to  call  for  attention  at 
this  place. 

In  the  right-hand  columns,  under 
the  caption  "Selling  Expense  per 
$100  of  Total  Net  Sales  per  Stock 
Turnover,"*  are  shown  the  different 
amounts  of  selling  expense  computed 
in  this  form  for  stores  of  different 
size  and  with  different  amounts  of 
advertising  expenditure  per  $100  of 
total  net  sales.  Other  things  being 
equal,  the  amounts  of  expenditure  for 
advertising  should  increase  both  sales 
and  the  rapidity  with  which  stock  is 
turned.     The  table  was  constructed 

*  The  method  by  which  this  unit  is  com- 
puted is  explained  on  page  4,  item   19. 


172 


TABLE  108 

AMOUNT    OF    ADVERTISING    EXPENSE    PER    $100    OF    TOTAL    NET    SALES,    FOR    STORES 

CLASSIFIED  BY  SIZE  AND  BY  AMOUNT  OF  SELLING  EXPENSE  PER 

$100     OF     TOTAL     NET     SiVLES,     1919 


Classified 

Total 
Net  Salea 

Amount  of 

Selling 

Excenae 

per  ijlOO  of 

Total 

llet  Sales 

Kumber 

of 
Stores 

Advertising  per  $100  of  Total  Hot  Sales 

Total 
Het  Sales 

Total 

Advertising 

Expense 

Amount 

Per  Cent. 

(in  000' b) 

OrapMo              .  ^  , 
Actual 

J  20   40   60  80  100  120  140  160 

Total 
(Average ) 

282 

535,563,014 

$799,944 

$2.25 

100.0 

■■■■ 

Total 
(Average ) 

Under  $6 

$6  to  $12 
$12  Jt  over 

71 
155 

56 

4,383,266 
21,000,010 
10,179,733 

43,371 
433,232 
323,341 

0.99 
2.06 
3.18 

44.0 
91.5 
141.3 

______                      ' 

: 
i 
1 

Total 
(Avoraga) 

33 

1^012,152 

11,888 

1.17 

52.0 

Ohder  (40 

Under  $6 

$6  to  |12 
$12  &  over 

17 
14 
2 

519,373 
446,275 
46,504 

4,834 

6,309 

745 

0.93 
1.41 
1.60 

41.3 
62.7 
71.1 

Total 
(Average) 

106 

6,020,400 

82,543 

1.37 

60.9 

|40  to  ^3u 

Under  $6 

$6  to  $12 
§12  8t  over 

42 
53 
11 

2,300,377 

3,046,862 

673,161 

19,564 
45,467 
17,  512 

0.35 
1.49 
2.60 

37.8 

66.2 

115.6 

Total 
(Average ) 

93 

11,667,072 

233,690 

2.00 

88.9 



4eo  to  $180 

Dnder  $6 

$6  to  $12 
$12  &  over 

11 
60 
27 

1,091,299 
7,262,132 
3,313,641 

13,433 
130,555 
89,702 

1.23 
1.80 
2.71 

54.7 
80.0 
120.4 

Total 
(Average) 

45 

16,863,390 

471,823 

2.80 

124.4 

$180  &  over 

Under  55 

$6  to  $12 
$12  ac  over 

1 
28 
16 

472,217 

10,244,741 

5,146,432 

5,540 
250,901 
215,382 

1.17 
2.45 

3.50 

52.0 

103.9 
155.6 

Average  $2.25 


in  or(ier  to  place  stores  on  a  unit  basis 
as  respects  both  sales  and  rates  of 
stock  turnover. 

While  it  cost  $10.16,  on  the  aver- 
age, in  1919,  to  sell  $100  worth  of 
goods,  the  corresponding  amount  per 
turnover  was  $4.62.  For  the  stores 
which  sold  in  1919  less  than  $40,000 
worth   of  goods,  and  for  which  the 


selling  expense  per  $100  of  total  net 
sales  was  $6.00,  the  corresponding 
amount  per  stock  turnover  was  $4.00. 
For  the  stores  which  sold  between 
$40,000  and  $80,000,  the  selling  ex- 
pense per  $100  of  total  net  sales  was 
$7.45.  The  corresponding  amount  per 
turnover  was  $4.14.  Similarly,  those 
that  sold  from  $80,000   to   $180,000 


173 


in  this  year  had  a  selling  expense  per 
$100  of  total  net  sales  of  $10.16,  and 
per  stock  turnover  of  $5.35.  The 
selling  expense  was  high  in  terms  of 
sales  for  the  stores  which  sold  in  this 
year  $180,000  and  over.  In  terms  of 
stock  turnover,  however,  it  was  only 
slightly  larger  than  for  those  which 
sold    between    $40,000    and    $80,000 


worth  of  goods.  "Within  each  store- 
group,  when  classified  by  size,  the 
amounts  of  selling  expense  per  $100 
of  total  net  sales  and  per  $100  of 
total  net  sales  per  stock  turnover 
increase  as  the  expenditures  for 
advertising  increase. 

In   Table  110  the  order  in  which 
the  data  contained  in  Table  109  are 


TABLE  109 

AMOUNT  OF  SELLING  EXPENSE  PER  $100  OF  TOTAL  NET  SALES  PER  STOCK  TURNOVER, 

FOR  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT  OF  ADVERTISING 

PER    $100    OF    TOTAL    NET    SALES,    1919 


Amount  of 

Advertising 

per  JlOO  of 

lotal 

Bet  Sales 

Number 

of 
Stores 

Sailing  Expense  per  $100  of 
Total  Net  Sales 

Selling  Expense  per  $100  of  Total  Net  Sales 
per  Stock  Turnover 

Classified 

Total 
Net  Sales 
<in  OOO's) 

Amount 

Per  Cent. 

Amount 

C 

Per  Cent. 

Graphlo 

1  Actual 
D  20   49  60  60  100  120  140 

Graphlo 

1  Act>ial 
20   40  60  80  100  120  140  160  180 

Total 
(Averoce ) 

282 

$10,16 

1 

100.0 

$4.62 

100.0 

! 

! 

Total 
(Average ) 

Under  |1 
$1  to  SS 
«2  to  S3 
*3  k   over 

79 
100 
66 
37 

7.07 
8.46 
11.62 
12.36 

69.6 
83.3 
114.4 
121.6 

3.37 
4.23 
5. OS 
5.15 

72.9 
91.6 
109.3 
111.5 

j 

i 

Total 
(Average ) 

S3 

6.00 

59.1 

4.00 

86.6 

Under  UO 

Under  $1 
»1  to  $2 
42  to  $3 
$3  &  over 

15 
14 
2 
2 

6.01 
7.12 
5.27 
7.11 

49.3 
70.1 
51.9 
70.0 

2.95 
5.4a 
2.29 
6.47 

63.9 
118.6 

49.6 
118.4 

i 

Ibtal 
(Average ) 

106 

7.45 

73.3 

4.14 

89.6 

; 

♦40  to  180 

Under  $1 

»i  to  ea 

$2  to  *3 
t3  i  over 

43 
37 
20 
6 

5.77 
7.54 
9.32 
13.23 

56.8 
72.2 
91.7 
130.2 

3.21 
4.32 
5.18 
7.78 

69.5 
93.5 
112.1 
168.4 

1 

Total 
(Average) 

98 

10.16 

100.0 

5.35 

115.8 

{80  to  tl80 

Under  $1 
»1  to  t2 
»8  to  «3 
tS  t  over 

IS 
39 
26 
15 

8.74 
8.47 
11.63 
13.12 

86.0 
83.4 
114.5 
129.1 

4.16 
4.23 
6.12 
7.29 

90.0 
91.6 
132.5 
157.8 

1 

i 

. 

1 

1 

Total 
(Avorteo ) 

45 

11. S6 

111.8 

4.06 

87.9 

— - 

$180  4  over 

Under  fl 

»1  to  e2 

tS  to  $3 
$3  &  over 

3 
10 
18 
14 

7.92 
8.36 
12.07 
12.12 

78.0 
92.1 
118. 8 
119.  S 

2.40 
3.60 
4.47 
4.33 

1 

' 

Average  $10.16 


Average  $4.62 


174 


presented  is  reversed.  That  is,  Table 
110  shows  the  amounts  of  selling  ex- 
pense per  $100  of  total  net  sales  and 
per  $100  of  total  net  sales  per  stock 
turnover  for  stores  of  different  size 
with  given  amounts  of  advertising 
expenditure  per  $100  of  total  net 
sales.  AVithin  each  group  of  stores, 
classified  according  to  expenditures 
for  advertising  in  relation  to  sales, 
the  amounts  of  selling  expense,  ex- 


pressed in  terms  of  sales  alone,  in- 
crease. In  terms  of  sales  per  turn- 
over the  direction  of  change  in  the 
amounts,  except  for  one  group  of 
stores,  is  conflicting.  The  general 
effect,  however,  from  the  use  of  the 
combined  unit  is  to  tone  down,  if  not 
wholly  to  nullify,  the  increase  in  the 
amounts  when  the  unit  of  comparison 
is  sales  alone. 

Another  measure  of  the  amounts  of 


TABLE  110 

AMOUNT  OF  SELLING  EXPENSE  PER  $100  OF  TOTAL  NET  SALES  PER  STOCK  TURNOVER, 

FOR    STORES    CLASSIFIED   BY   AMOUNT    OF    ADVERTISING   PER   $100    OF 

TOTAL    NET    SALES    AND    BY    SIZE    OF    STORE,    1919 


Amount  of 
Advertising 
per  (100  ot 


Olueifled 

Totaa 
Vat  £^00 
(is  000 '■) 


Solllns  Bzpsniio  par  %VX  of  Total  lot  Salsa 


Stores       Aiiuji.t 


0     20     40      60      80   100   120   140 


0     20     40     60     80   100  120    140   160  ISO 


tS  to  %Z 


%S  h  I 


Dndsr  $40 
(40  to    tao 
teo  to  tiao 

$180  &  OTor 


CBdor  $40 

iv)  to  $eo 
Seo  to  tiso 
(IBO  &  oTsr 


Dnaer  $40 
t40  to  $S0 

t£o  to  $iao 

^180  k  over 


Utnlar  $40 
$40  to  $80 
$80  to  $180 

$1£0  &  ovsr 


Osdsr  $40 
$40  to     $80 

$80  to  $180 
tieo  lE  over 


$10.16 


6.00 
7.45 

10. U 
11. S6 


7.07 


5.01 
5.77 
8.74 
7.  02 


8.46 


7.12 
7.54 
8.47 

9.se 


u.e2 


6.27 

s.:2 

11.65 
12.07 


12.55 


T.U 
15.25 

15.12 
12.12 


100.0 


59.1 
75.5 
100.0 
lll'.a 


6S.6 


49.5 
G6.8 
86.0 
79.0 


85.5 


70.1 
72.2 
83.4 

92.1 


U4.4 


51.9 
91.7 
114.6 

iis.a 


121.6 


70.0 
130.2 
129.1 
119.5 


175 


4.00 
4.14 
5.35 

4.06 


5.57 


2.95 
5.21 
4.16 
2.40 


4.23 


£.48 
4.52 
4.25 
5. SO 


s.oe 


2.29 
S.IS 
6.12 
4.47 


5.15 


5.47 
7.7a 
7.29 
4.33 


Averags  $4.62 


100.0 


86.6 
89. S 
115.8 
87.9 


72.9 


65,9 

69.6 
90.0 
51.9 


91.6 


118.6 
93.5 
91.  S 
77.9 


109.5 


49.6 
112.1 
15S.S 

96.8 


lU.S 

lis  .4 
168.4 
187.8 
95.7 


TABLE  111 


AMOUNT   OF    SELLING   EXPENSE    PER   $100    OF    TOTAL    NET    SALES   PER   AMOUNT   SOLD 
PER  $1  OF  A\'ERAGE  INVENTORY,  1918  AND  1919,  FOR  STORES  CLASSI- 
FIED BY  SIZE   AND  BY  AMOUNT  OF  AD\nERTISING  PER 
$100    OF    TOTAL    NET    SALES,    1919 


Anount  of 

/IdYortHlna 

por  1100  of 

Tot»l 

Cot  S«lea 

KiE^bor 

or 
Storoa 

Eolllng  Qtponao  por  tloo  of  Total  Not  SAlsa 

BoUlng  Bxponso  por  tlOO  of  Total  Not  Saloa  por  Anont 
Sold  par  $1  of   Avarago   Inventory,    1918  and   1919 

Ict»l 

ABoont 

< 

For  Cont. 

Amount 

Par  Cent. 

(la  00(J^») 

20      40      60      60    100    120    140 

*■*"»                                    1  Actual 
3      20      40      60      80    100    100    140   160    IBO 

Tot.a 
(AvorKGo) 

233 

tlO.16 

lOO.O 

tJ.lS 

100.0 

Ckulor  (1 
♦I  to  (2 
»S  to  »3 

|3  k  ovor 

TO 

100 
66 

n 

7.07 
0.46 

12.55 

e9.6 

es.s 

114.4 
121.6 

2.42 
2.88 
3. 56 
3.54 

77.3 
92.0 
107.3 
106.7 

Itotal 
(iverftgo) 

■"■^■^l* 

TotU 
(AT«r>ee) 

3S 

e.oo 

E9.1 

2.60 

89.5 

Uudtr  Uo 

Ifailor  tl 
«1  to»2 
|2  t.  »S 
«S  »  o«r 

15 
14 

t 

e 

S.Ol 
7.12 
6.27 
T.ll 

49.5 
70.1 
61.9 
70.0 

2.08 
5.93 
1.63 
3.S4 

66.S 
125.6 
48.9 

^^__ 

113.1 

i 

Total 
(Avorft^v ) 

IM 

7.<5 

73.3 

2.94 

»S,» 

Ko  to  tao 

Dnaor  tl 
»1  to  (2 
(2  to  (> 
»S  I  o„r 

43 

37 
20 
6 

S.77 
7.34 
9.32 
13.23 

£6.8 
72.2 
91.7 
130.2 

2.25 

3.02 
3.67 
5.25 

71.9 
96.3 
U4.1 

167.7 

^J 

Iot>l 
(Avorago) 

se 

10.16 

100.0 

5.63 

112.8 

1 

Ucaer  (1 
«1  to  »2 
M  to  »S 
»S  (k  o«r 

IS 
39 

se 

IS 

8.74 

e.47 

U.65 
13.12 

86  .0 

es.4 

114.3 
129.1 

2.89 
2.93 
4.00 
4.93 

92.3 
93.6 
127.8 
157.5 

(60  io  lieo 

; 

. 

: 

Total 
Uioraeo) 

4S 

U.S6 

ui.e 

2.71 

86.6 

DBilor  }1 
»1  to  tZ 
»2  to  tS 

tS  &  ovar 

3 
10 
IS 
14 

7.92 
9.36 
12.07 
12.12 

78  .0 
92.1 
118.8 
U9.S 

1.73 
2.39 
2.96 
2.76 

65.3 
76.4 
94.6 
87.9 

(ISO  <>  cnr 

. 

I 

Average  $X0.16 


^AT«ra^  l^iU 


selling  expense  per  $100  of  total  net 
sales  for  stores  classified  by  the 
amounts  expended  for  advertising  is 
found  in  Table  111.  The  amounts  are 
expressed  for  each  unit  sold  per  $1 
of  average  inventory,  1918  and  1919.* 
It  will  be  recalled  from  an  earlier 
discussion,  that  inventories  in  terms 

*  The  methofl  by  which  this  unit  is  com- 
puted is  exijlained  on  page  4,  item  18. 


of  sales  are  relatively  low  in  the  large 
stores.  Moreover,  the  amounts  of 
both  advertising  expense  and  selling 
expense  per  $100  of  total  net  sales 
have  been  found  to  be  relatively  high 
in  these  stores.  Accordingly,  when 
the  stores  are  classified  by  size  and 
the  amounts  of  selling  expense  per 
$100  of  total  net  sales  for  each 
amount  sold   per  $1   of  average  in- 


176 


ventory,  1918  and  1919,  are  calcu- 
lated, they  are  found  to  increase  as 
the  size  of  the  stores  increases,  but 
by  smaller  amounts  than  selling  ex- 
penses when  they  are  expressed  in 
terms  of  sales  alone.  The  amounts 
of  selling  expense,  when  measured  in 
terms  of  sales  and  in  terms  of  sales 
for  the  amount  sold  per  $1  of  average 
inventory,  1918  and  1919,  increase 
as  the  amounts  spent  for  advertising 
per  $100  of  total  net  sales  increase. 
The  increases  are  greater  when  the 
amounts  of  selling  expense  are  ex- 
pressed in  terms  of  the  simple,  rather 
than  the  complex,  unit. 

Table  111,  like  the  tables  which 
precede  it,  serves  two  purposes :  First, 
to  give  the  actual  amounts  of  selling 
expense  expressed  in  two  ways;  and, 
second,  to  illustrate  increases  or  de- 
creases in  the  amounts  for  stores  when 
classified  in  the  manner  shown. 

The  relative  increases  in  total  net 
sales  and  selling  expense  between 
1914  and  1918,  and  1918  and  1919  for 
a  group  of  stores  having  annual  sales 
between    $20,000    and    $40,000    are 


shown  in  Table  112  when  the  stores 
are  classified  with  respect  to  the 
amounts  of  advertising  expenditure 
per  $100  of  total  net  sales  in  1914. 

Between  1914  and  1919,  for  the  60 
stores  included,  sales  increased  113.7 
per  cent.,  while  total  selling  expense 
increased  79.9  per  cent.  When  the 
amounts  of  selling  expense  are  ex- 
pressed in  terms  of  sales,  the  average 
amount  decreased  15.9  per  cent,  be- 
tween 1914  and  1919.  A  decrease  of 
9.2  per  cent,  in  the  average  amount 
of  selling  expense  in  relation  to  sales 
occurred  between  1914  and  1918. 
This  is  the  condition  for  the  stores 
irrespective  of  the  amounts  expended 
for  advertising  in  relation  to  sales. 
When  the  stores  are  classified  accord- 
ing to  the  amounts  of  advertising 
expenditure  per  $100  of  total  net 
sales  in  1914,  the  percentages  of  de- 
crease in  selling  expense  per  $100  of 
total  net  sales  between  1914  and  1918 
vary  inversely  with  the  amounts  ex- 
pended for  advertising  in  relation  to 
sales.  For  the  stores  spending  less 
than  $1  per  $100  of  total  net  sales, 


TABLE  112 

RELATION  OF  SELLING  EXPENSE  TO  TOTAL  NET  SALES,  1919,  1918,  AND  1914,  FOB 

STORES  HAVING  SALES  FROM  $20,000  TO  $40,000  IN  1914,  CLASSIFIED  BY 

AMOUNT  OF  ADVERTISING  PER  $100  OP  TOTAL  NET  SALES,  1914 


fcDOTmt   of 

SiBsbep 

of 
BtopeB 

Total  Bet  Beleo 

Total  BelllQg  Expense 

SeUlDg  Ezpenae  par  ♦lOO  of 
Total  Set  Salee 

per  »100  of 

Tot.l 

Set  EaleB 

1914 

1914 

1918 

1919 

1914 

191fl 

1919 

1914 

1918 

1919 

^t 

Aaount 

Per  Cent, 
Increeee 
o»er   1914 

toount 

for  Cent, 
locreaae 
over  1914 

ABOV&t 

Aaount 

Per  Cont. 
Increase 
omr  1914 

._t 

Per  Cent. 
Inereaae 
over  1914 

Anount 

Jjaoont 

Por  Cent. 
3ecreaae 
rron  1914 

taaoxmt 

Deoreaae 
free  1914 

ToMl 
(Averftgo) 

60 

♦1,721,456 

»2,60e,966 

61.6 

t5,679,474 

115.7 

»I55,557 

♦213,762 

3T.6 

♦279,457 

79.9 

♦9.02 

♦a. 19 

.   9.2 

♦T.6» 

15.8 

Ondor  tl 
♦1  to»S 
12*   OVM- 

16 
24 
20 

479,026 
665,167 

679,26: 

666,409 

1,014,242 

928,5JS 

39.1 

ee.9 

60.5 

997,620 
1,406,492 

1,275,162 

108.3 
UZ.l 
120.1 

51,704 
Ce,9]2 
05,921 

4i<ee4 

£4,165 
87,745 

53.0 
44.3 

54.5 

65,021 
US,  755 
U0,665 

67.8 
96.5 
69.4 

6.62 
8.78 
11.28 

6.28 
8.30 
9.45 

6.1 
5.6 
16.2 

6.51 
8.25 
8.68 

19.3 
6.« 
25.0 

177 


the  decrease  was  5.1  per  cent. ;  for 
those  spending  between  $1  and  $2  it 
was  5.6  per  cent. ;  and  for  those  spend- 
ing $2  and  over,  16.2  per  cent.  Simi- 
lar, but  less  uniform,  decreases  in  the 
amounts  of  selling  expense  per  $100 
of  total  net  sales  are  shown  for  the 
year  1919  over  1914  in  relation  to  the 
amounts  spent  for  advertising  per 
$100  of  total  net  sales.  Those  which 
spent  less  than  $1  for  advertising  in 
relation  to  sales,  decreased  their  sell- 
ing expense,  similarly  measured,  19.8 
per  cent. ;  those  which  spent  $1  to  $2 
decreased  their  selling  expense  6.4 
per  cent.,  and  those  which  spent  $2 
and  over  decreased  their  selling  ex- 
pense per  $100  of  total  net  sales  23.0 
per  cent. 

It  is  not  maintained  that  this  table 
proves  that  the  increased  advertising 
expenditure  caused  the  decrease  of 
selling  expense  in  relation  to  sales. 
It  points  to  this  conclusion,  however, 
in  view  of  the  fact  that  between  each 
of  the  years— 1914  and  1918,  and 
1918  and  1919 — the  general  tendency 
was  for  the  decreases  to  become  larger 


as  the  expenditures  for  advertising  in 
terms  of  total  net  sales  increased. 

It  should  be  observed  that  the  stores 
in  Table  112  are  classified  according 
to  the  amounts  expended  for  adver- 
tising in  1914  and  that  four  years 
elapsed  between  1914  and  1918,  and 
a  single  year  between  1918  and  1919. 
Obviousl}^  factors  other  than  adver- 
tising may  have  influenced  the  per- 
centages of  increase  in  sales  and  sell- 
ing expense  and  the  percentages  of 
decrease  in  selling  expense  in  terms  of 
sales. 

The  method  of  analysis,  used  in 
Table  112,  is  followed  in  Table  113 
for  a  group  of  stores  which  had  in 
1918  sales  between  $40,000  and  $60,- 
000.  The  purpose  of  this  table  is  to 
show  the  relation,  if  any,  between  the 
amounts  expended  for  advertising  in 
terms  of  sales  in  1918  and  the  extent 
to  which  selling  expense  in  terms  of 
sales  decreased  in  1919  as  compared 
with  1918.  Brief  references  to  the 
details  of  this  table  will  show  the 
nature  of  this  relationship  for  the  60 
stores  involved.     Total  net  sales  in- 


TABLE  113 

RELATION   OF  SELLING  EXPENSE   TO   TOTAL   NET   SALES,    1919    AND   1918,   FOR   STORES 

HAVING  SALES  FROM  $40,000   TO   $60,000  IN  1918,   CLASSIFIED  BY   AMOUNT 

OF    ADVERTISING    PER    $100    OF    TOTAL    NET    SALES,    1918 


Amount  of 

Hunber 

of 
Stores 

Total  Net  Sales 

Total  Selling  Expense 

Selling  Expense  per  $100  of 
Total  Net  Sales 

Advertising 

por  $100  of 

Total 

Met  Sales 

1918 

1918 

1919 

1918 

1819 

1918 

1919 

Aiaount 

Per  Cent. 
Increaee 
over  1918 

Amount 

Per  Cent. 
Increase 
over  1918 

Amount 

Per  Cent. 
Decrease 
from  1918 

Total 
(Average) 

60 

$2,969,556 

$4,299,028 

44.8 

$243,612 

$327,559 

34.5 

$8.20 

$7.62 

7.1 

Dnder  tl 
$1  to  $2 
J2  4  over 

23 
22 
15 

1,151,959 

1,079,477 

738,122 

1,672,332 
1,581,042 
1,045,654 

45.2 
46.5 
41.7 

69,911 
93,513 
60,188 

98,569 
125,676 
103,312 

41.0 
34.4 

ea.s 

6.07 
8.66 
10.86 

5.89 
7.95 
9.89 

3.0 
8.2 
8.9 

178 


creased  between  1918  and  1919  by 
44.8  per  cent.  Simultaneously,  sell- 
ing expense  increased  34.5  per  cent. 
The  result  is  that  selling  expense  per 
$100  of  total  net  sales  decreased  7.1 
per  cent.  When  the  stores  are  clas- 
sified according  to  the  amounts  ex- 
pended for  advertising  per  $100  of 
total  net  sales  in  1918,  the  percentages 
of  decrease  become  successively  larger 
as  the  expenditures  for  advertising  in 
relation  to  sales  increase.  For  the 
stores  which  spent  least,  that  is,  under 
$1,  the  percentage  of  decrease  be- 
tween 1918  and  1919  was  3.0.  For 
those  that  spent  between  $1  and  $2, 
the  corresponding  percentage  of  de- 
crease was  8.2,  and  for  those  which 
spent  $2  and  over,  the  decrease  was 
8.9  per  cent.  That  is,  as  the  amounts 
expended  for  advertising  in  terms  of 
sales  in  1918  increase,  the  percentages 
of  decrease  in  selling  expense  per  $100 
of  total  net  sales  between  1918  and 
1919  become  larger.  It  will  be  noted 
from  this  table  that  the  size  of  the 
stores  involved  in  each  of  the  years  is 
substantially  the  same,  hence  store- 
size  does  not  explain  the  decrease  to 
which  attention  is  called.  The  same 
observation  applies  to  the  detail  in 
Table  112. 

If  Tables  112  and  113  are  consid- 
ered as  a  unit,  it  seems  reasonable  to 
conclude  that  for  the  stores  in  ques- 
tion, relatively  large  amounts  of  ad- 
vertising expenditure  in  terms  of  sales 
accompany,  if  they  do  not  determine, 
large  decreases  in  selling  expense  in 
terms  of  sales.  Obviously,  there  is  a 
limit  beyond  which  amounts  of  sell- 
ing expense  per  $100  of  total  net  sales 


cannot  be  reduced  by  increasing  ex- 
penditures for  advertising.  What  that 
limit  is,  the  tables  do  not  reflect. 
Neither  can  they  be  used  to  prove  that 
large  amounts  of  advertising  expendi- 
ture will  reduce  selling  expense.  They 
do  show,  however,  a  definite  relation- 
ship between  advertising  expenditures 
and  selling  expense  which  could 
hardly  have  occurred  with  the  regu- 
larity shown  in  the  tables  without 
some  close,  if  not  causal,  relationship 
existing  between  them. 

In  confirmation  of  the  conclusions 
drawn  from  Tables  112  and  113, 
Table  114  is  presented.  The  basis  for 
the  classification  of  the  154  stores  is 
the  amounts  expended  for  advertis- 
ing per  $100  of  total  net  sales  in  1914, 
but  no  account  is  taken  of  store  size. 
In  interpreting  this  table,  it  should 
be  remembered  that  the  larger  the 
store,  other  things  being  equal,  the 
greater  the  increase  in  total  net  sales 
from  year  to  year.  Similarly,  the 
larger  the  store,  the  greater  the  in- 
crease in  selling  expense  from  year  to 
year.  Moreover,  it  should  be  borne 
in  mind,  generally  speaking,  that  the 
larger  the  store,  the  greater  the  ex- 
penditure for  advertising  per  $100  of 
total  net  sales.  Accordingly,  when 
the  stores  are  grouped  irrespective  of 
size  and  are  classified  by  amounts  ex- 
pended for  advertising  per  $100  of 
total  net  sales,  the  seeming  effect  of 
advertising  expenditures  on  the 
amount  of  selling  expense  in  relation 
to  sales  may  be  due,  in  part  at  least, 
to  the  size  of  the  store.  It  has  been 
thought  worth-while,  however,  in 
spite  of  the  limitations  of  such  a  clas- 


179 


sification,  to  present  Table  114  be- 
cause, in  a  general  way,  it  confirms 
the  conclusions  drawn  from  Tables 
112  and  113. 

For  the  154  stores,  the  amounts  of 
sales  for  the  entire  group  increased 
between  1914  and  1918  by  59.4  per 
cent,  and  between  1914  and  1919  by 
126.4  per  cent.  The  corresponding 
percentage  increases  in  selling  ex- 
pense between  the   respective   years 


the  amounts  expended  for  advertising 
increase.  Similar  conditions  obtain 
for  the  percentage  increases  in  selling 
expense  for  the  respective  years. 
When  the  amounts  of  selling  expense 
are  shown  in  terms  of  total  net  sales, 
however,  the  percentage  decreases 
become  larger  as  the  amounts  spent 
for  advertising  in  terms  of  sales  in- 
crease. To  this  general  rule,  between 
1914  and  1918,  there  is  but  one  im- 


TABLE  114 

RELATION   OP   SELLING   EXPENSE   TO    TOTAL   NET    SALES,   1919,    1918,    AND   1914,   FOB 

STORES   CLASSIFIED  BY  AMOUNT   OF  ADVERTISING  PER  $100 

OF    TOTAL    NET    SALES    IN     1914 


Number 

of 
Etorea 

Total  Net  Sole.      '^^SJpSSjJ"^ 

Selllrg  Expense  per  $100  of  Total  Hat  Sale* 

Advertising 

per  tlCO  of 

Total 

Par  Cent.  Increase 
over  1914 

For  Cent.  Xacrcaet) 
over  1914 

Anoutt 

Per  Cent.  CbanM 
from  1914 

Het  Sales 
1914 

1918 

1919 

1918 

1919 

1914 

1918 

1919 

1918 

1919 

Total 
(Average) 

154 

59.4 

126.4 

51.9 

loe.o 

$11.48 

SlO.94 

$10.44 

-4.7 

-9.1 

Under  $1 
|1  to  $2 
is   to  S3 
tS  i  over 

27 
52 
56 
59 

50.7 
56.5 

44.6 
7S.4 

93.1 
114.6 
112.7 
351.8 

54.2 
45.9 
4S.S 
61.4 

84.4 
100.9 

99.1 
117.6 

6.62 

9.85 

10.79 

14.49 

6.30 

9.17 

10.70 

13.C9 

6.17 

9.20 

9.79 

12. SI 

+2.7 

-6.7 

-0.8 

-10.1 

-6.6 
-6.4 

-9.S 
-15.7 

were  51.9  and  106.0.  When  the 
amounts  of  selling  expense  are  deter- 
mined for  each  $100  of  total  net  sales, 
they  are  found  to  have  decreased  be- 
tween 1914  and  1918  by  4.7  per  cent, 
and  between  1914  and  1919  by  9.1  per 
cent. 

When  the  stores  are  classified  by 
expenditures  for  advertising  per  $100 
of  total  net  sales,  the  percentage  in- 
creases in  sales  become  larger  between 
1914  and  1918,  and  1914  and  1919,  as 


portant  exception.  Between  1914  and 
1919  the  percentage  decreases,  with 
an  unimportant  exception,  become 
larger  as  the  amounts  spent  for  ad- 
vertising increase.  For  the  stores 
which  spent  least  for  this  purpose, 
the  amounts  of  selling  expense  per 
$100  of  total  net  sales  decreased  be- 
tween 1914  and  1919  by  6.8  per  cent., 
while  for  those  which  spent  most,  that 
is,  $3  and  over,  the  corresponding  de- 
crease was  13.7  per  cent. 


ISO 


Tables  112  to  114,  inclusive,  should 
be  considered  in  the  light  of  the  dis- 
cussion concerning  them.  In  Table 
114  the  elements  which  determine  the 
decreases  in  selling  expense  are  less 
likely  to  be  the  amounts  spent  for 
advertising  than  in  the  other  tables. 

The  amounts  of  selling  expense  for 
stores  classified  by  size  and  by  expen- 


ditures for  advertising  per  $100  of 
total  net  sales  may  also  be  shown  in 
terms  of  total  expense  and  in  terms 
of  total  expense  per  stock  turnover. 
This  is  done  in  Table  115.  So  far  as 
any  unmistakable  tendency  for  the 
amounts  to  increase  or  decrease  under 
different  conditions  of  advertising  ex- 
penditure is  concerned,  the  results  of 


TABLE  115 

AMOUNT  OF  SELLING  EXPENSE  PER  $100   OF  TOTAL   EXPENSE   PER  STOCK   TURNOVER, 

FOR  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT  OF  ADVERTISING 

PER     $100     OF     TOTAL     NET     SALES,     1919 


Amoujit  of 

Advertlelng 

per   tlOO  of 

Total 

Met  Salee 

Hiaabor 

of 
Storee 

Selling  Expenae  per  $100  of   Total  Expense 

Selling  Eipenae   per   $100   of   Total   Expense   per  Stock 
Turnover 

Total 

Ajaount 

Per  Cent. 

Amount 

For  Cent. 

(In  OOO'b) 

"''P"^                    1     Actual 

D      20      40      60      60    100    120 

Oraphlo 

^                                          Actual 

D      20       40      to      eo    100    120    140    160 

Totai 

282 

$46.74 

100.0 

$22.15 

1 

100.0 

Older  $1 
H  to  $2 
«2   to  tS 
|3  i  over 

79 
100 
66 
S7 

45.42 

47.06 
51.60 
49.15 

89.1 
96.6 

105.9 
100.6 

20.68 
23.53 
22.43 

20.48 

Iot«l 
(Average) 

'"^^^''""""'  ! 

106.2 
101.9 
92.5 

Total 
(Average) 

5S 

55.10 

72.0 

23.40 

105. f 

IHHM^H   • 

tMder  $1 
*1  to  »£ 
12  to  *3 
^  &  over 

15 
14 
2 
2 

34.55 

39.  OS 
24.24 
28.76 

70.9 
80.1 
49.7 
59.0 

20.32 
30.04 
10.54 
22.12 

91.7 
135.6 
47.6 
99.9 

Under  $40 

: 

I 

Total 
(Average) 

106 

41.79 

85.7 

25.22 

104.8 

1 

Under  ti 
»1  to  $2 
»2   tots 
*5  4  over 

43 

57 
20 

S 

37.87 
40.49 
45.16 
54.15 

77,7 
83.1 
92.7 
Ul.l 

21.04 
23.82 
25.09 
31.84 

95.0 
107.5 
113. S 
143.7 

(40  to  (80 

Totaa 
(Average ) 

98 

61.66 

. 

106.0 

27.19 

122.8 

i 

Older  tl 
|1  to  $2 
$2   to  »S 
»5kover 

IB 
39 
26 

15 

60.87 
48.19 
54.10 
54.45 

104.4 
98.9 
UO.O 
111.7 

24.22 
24.10 
28.47 

30.24 

109.3 
108.8 
128.5 
136.5 

$80  to  $180 

1 
: 

Totai 
(Average ) 

45 

49.53 

101.7 

17.70 

79.9 

Under  Jl 
»1  to   J2 
t8  to  »3 
»S  i  over  " 

5 
10 
18 
14 

44.09 
50.83 
61.66 
47.57 

90.5 
104.3 
106.0 

97.0 

13.36 
19.55 
19.13 
16.9» 

60. » 
86.3 
86.4 
76.7 

$1£0  &  over 

1 

Average  $48.74 


Average  $22.15 


181 


the  table  are  inconclusive.  The  actual 
amounts,  however,  are  of  interest  and 
for  this  reason  the  table  is  included  in 
this  study. 

B. — Yearly  Amounts  of  Selling  Ex- 
pense per  $100  of  Total  Net  Sales 
and  per  $100  of  Total  Expense, 
for  Stores  Classified  hy  Size  of 
City  in  Which  Located*  1919. 

When  the  282  stores  are  classified 
according  to  their  location  in  two  city- 
groups  and  by  the  amount  of  adver- 
tising expenditure  per  $100  of  total 
net  sales,  as  in  Table  116,  it  is  found 

*  Population  fibres  are  for  1920. 


that  the  amounts  of  selling  expense 
per  $100  of  total  net  sales  are  less  for 
the  stores  in  the  small  cities  than  for 
those  in  the  large  cities,  when  treated 
as  a  total  and  when  classified  by  the 
amounts  expended  for  advertising  in 
relation  to  sales.  To  this  general  rule 
there  are  no  exceptions.  It  should  be 
noted  that  no  attention  is  paid  in  this 
connection  to  the  size  of  the  stores, 
except  as  it  is  indirectly  reflected  in 
the  amounts  expended  for  advertising 
per  $100  of  total  net  sales.  With  this 
in  mind,  it  is  difficult  to  assign,  as  be- 
tween expenditures  for  advertising 
and  the  size  of  the  stores,  the  causes 
for  these  increases.    It  is  sufficient  at 


TABLE  116 

AMOUNT    OF    SELLING    EXPENSE    PER    $100    OF    TOTAL    NET    SALES    PER    STOCK    TURN- 
OVER,   FOR   STORES    CLuVSSIFIED    BY   SIZE    OP    CITY    AND    BY    AMOUNT    OF 
ADVERTISING    PER    $100    OF    TOTAL    NET    SALES,    1919 


Amount  of 

Advertising 

per  tlOO  of 

Total 

Hat  Sales 

of 
Stores 

Selling  Expense  per  $100  of  Total 
Mat  Sales 

Selling  Expenoo  per  $100  of  Total  Net  Soles 
per  stock  Turnover 

of 

Amount 

( 

Per  Cent. 

Arcount 

< 

Per  Cent. 

(In  OOO'i) 

(jTophlc 
)  20   40   60  80  100  120  140 

Actual 

Oraphlc 
)  20   40   60  80  100  120  140  160 

Aetud 

Total 
(Average) 

282 

tlO.16 

100.0 

$4.62 

100.0 

1 

Total 
(Avorogo ) 

Under  il 
»1  to  %Z 
»2  to  $3 
J3  i  over 

79 
100 
66 
37 

7.07 
8.46 
11.62 
12.35 

69.6 
83.3 
114.4 
121.6 

3. 37 
4.23 
5.05 
5.15 

72.9 
91.6 
109.9 
111.5 

i 

■ 

• 

Total 
(Average ) 

204 

8.61 

84.7 

4.53 

98.1 

Under 

Under  tl 
»1  to  $2 
*2  to  t3 
to  Ik  over 

72 
79 
39 
14 

6.79 
8.27 
10.37 
11.95 

66.8 
81.4 
102.1 
117.6 

3.39 
4.59 
5.76 
7.03 

73.4 
99.4 
124.7 
152.2 

Total 
(A/orace) 

78 

11.55 

113.7 

4.44 

96.1 

Ondor  $1 
tl  to  tS 
52  to  ta 
$3  »  ovor 

7 
21 
27 
23 

8.70 
8.81 
12.36 
12.41 

05.6 
86.7 
121.7 
122.1 

3.48 
3.52 
4.75 
4.77 

75. S 
76.2 
102.8 
103.2 

40  and 

; 

I 

; 

'                 ' 

ATarage  tioue 


Avoroge  $4.S2 


182 


this  time  to  call  attention  to  the  fact 
as  stated. 

When  the  amounts  of  selling  ex- 
pense per  $100  of  total  net  sales  are 
computed  for  each  stock  turnover,  the 
average  amount  is  higher  for  the 
stores  in  the  small  than  for  those  in 
the  large  cities,  and  this  condition 
obtains  with  one  exception  for  the 
stores  with  the  same  amount  of  ad- 
vertising, but  located  in  different- 
sized  cities.  That  is,  while  the 
amounts  of  selling  expense  per  $100 
of  total  net  sales  are  generally  higher 
for  the  stores  in  the  large  cities,  the 
high  turnover  in  these  stores  serves 
to  compensate  for  this  disadvantage, 


thus  making  the  amounts  smaller  per 
stock  turnover. 

The  association  between  the  amounts 
of  advertising  expenditure  per  $100 
of  total  net  sales  and  the  amounts  of 
selling  expense,  similarly  expressed, 
for  stores  classified  by  location  is 
brought  out  in  Table  117.  This  table 
shows  first,  that  the  amounts  of  adver- 
tising per  $100  of  total  net  sales  are 
higher  for  the  stores  in  the  large  than 
for  those  in  the  small  cities,  both 
when  treated  as  a  total  and  when  con- 
sidered by  amounts  of  selling  expense 
per  $100  of  total  net  sales.  Second, 
in  both  of  the  city-groups  the  amounts 
of  advertising  expenditure  per  $100 


TABLE  117 

TOTAL   NET   SALES,  ADVERTISING  EXPENSE,   AND  AMOUNT  OF  ADVERTISING  PER   $100 

OF    TOTAL    NET    SALES,    FOR    STORES    CLASSIFIED    BY    SIZE    OF    CITY    AND    BY 

AMOUNT  OF  SELLING  EXPENSE  PER  $100  OF  TOTAL  NET  SALES,  1919 


size 

Ainoimt  of 

Selling 

Emonee 

per  ?1C0  of 

Total 

Net  Sales 

Number 

of 
Stores 

Total 
Net  Sales 

Total 

Advertising 

Expense 

Advertising  per  JlOO  of  Total  Net  Sales 

of 

City 

(In  000' s) 

Amount 

Per  Cant. 

Craphl c                                   1 

1    Actual 

D     20     40     60     80  100  120  140  160  160 

Total 
(Average ) 

282 

$35,565,014 

{799,944 

$2.25 

100.0 

i 
■■■■" 

Total 
(Average ) 

Under  $6 

$6  to  $12 
§12  &  over 

71 

155 

56 

4,585,266 
21,000,010 
10,179,738 

43,571 
433,232 
323, 541 

0.99 
2.06 
5.18 

44.0 
91.6 
141.3 

^^m 

Total 
(Average) 

204 

16,862,679 

267,754 

1.59 

70.7 

Dnder 
40 

Under  J6 

56  to  $12 
$12  k  over 

66 
110 
28 

3,639,885 
10,203,111 
3,019,683 

35,495 

167,092 

65,167 

0.98 
1.64 
2.16 

43.6 
72.9 
96.0 

i 

Total 
(Average ) 

78 

18,700,335 

532,190 

2.85 

126.7 

40  and 
over 

Dnder  J6 

$6  to  $12 
$12  &  over 

5 

45 

'  28 

743,381 
10,796,899 
7,160,055 

•      7,875 
266,140 
258,174 

1.06 
2.46 
3.61 

47.1 
109.3 
160.4 

AtacAifi.  is .25 


183 


of  total  net  sales  increase  directly 
with  the  amounts  of  selling  expense 
per  $100  of  total  net  sales. 

In  Table  118  the  amounts  of  sell- 
ing expense  for  stores  classified  by 
size  of  city  and  by  the  amount  ex- 
pended for  advertising  in  relation  to 
sales  are  shown  first  as  proportions 
of  total  expense  and  second,  in  rela- 
tion to  total  expense  per  stock  turn- 
over. "Within  each  city-group  and 
for  the  total,  the  amounts  of  selling 
expense  per  $100  of  total  expense  in- 
crease with  a  few  exceptions  as  the 
amounts  expended  for  advertising  per 
$100  of  total  net  sales  increase.  When 
the  size  of  the  city  alone  is  considered, 


the  amount  of  selling  expense  per 
$100  of  total  expense  is  lower  in  the 
small  than  in  the  large  cities,  although 
group  by  group,  the  average  amounts 
are  larger  in  the  stores  in  the  small 
than  for  those  in  the  large  cities. 
When  the  amounts  are  expressed  in 
terms  of  stock  turnover,  they  are 
higher  in  the  small  than  in  the  large 
cities  for  the  stores  as  a  total  and  for 
the  individual  groups.  The  latter 
condition  is  due  primarily  to  the  slow 
turnover  which  characterizes  the 
stores  in  the  small  cities. 

The  tendencies  for  the  amounts,  as 
shown  in  Table  118,  to  increase  or 
decrease  are  inconclusive  in  some  re- 


TABLE  118 

AMOUNT  OF   SELLING  EXPENSE  PER  $100   OF  TOTAL  EXPENSE  PER  STOCK  TURNOVER, 
FOR  STORES  CLASSIFIED  BY  SIZE  OF  CITY  AND  BY  AMOUNT  OF  ADVER- 
TISING   PER    $100    OF    TOTAL    NET    SALES,     1919 


Salllne  Exp«nae  per  *100  of  Tot»l  txpcnao 


Graphic 
0     30     40      60      BO  100    130 


0     ?0      40     00      90   100   120   140   160 


Total 


(AV.T 


Ur.ler  $1 
$1  to  C2 
J2  to  »3 
C^  fc  ovor 


Totol 
(Aver'-;o  1 


Undor  il 
tl  to  12 
J2  to  J3 
tS  &  over 


Dixlor  }1 
fl  to  J2 
»  to  C3 

^  *    over 


}4a.7i 


4:j.42 

47. OG 
51.00 
49.15 


49.  J3 


44. C4 

47.60 
50.82 
54.26 


51. J9 
48.44 


100.0 


89.1 
96.6 
105.9 
100.8 


91.0 
97.7 
104.3 
111.3 


100.0 


79.2 
J4  .7 
IOC. 7 
^9.4 


22. 4J 
20. 4S 


26.44 
28.23 
J1.92 


13.85 


15.45 

ia.4c 

20.00 

10.  c: 


100.0 


93.4 

ioe.2 

101.3 
92.5 


114.9 

100. B 
119.4 
127.4 
144.1 


85.1 


C9.0 
83.3 
90.3 
04.1 


Avoraf^o  ;^.74 


90.3 


184 


spects.  This,  however,  does  not  de- 
tract from  the  value  of  the  table  for 
the  second  purpose  for  which  it  is 
prepared,  namely,  to  show  norms  or 
standards  of  selling  expense  distribu- 
tion, as  measured  by  simple  and  com- 
plex units.  In  many  respects  the 
more  refined  the  measure  used  to  ex- 
press the  amounts  of  selling  expense, 
the  more  significant  become  the  re- 
sults. 

C. — Summary. 

(1).  For  all  stores  and  for  stores 
classified  by  size,  the  amounts 
of  selling  expense  per  $100  of 
total  net  sales  increase  as  the 
amounts  of  advertising  per 
$100  of  total  net  sales  in- 
crease. 

(2).  The  amounts  of  selling  ex- 
pense per  $100  of  advertising 
decrease  as  the  amounts  of 
advertising  per  $100  of  total 
net  sales  increase.  This  holds 
for  all  stores  and  also  for 
stores  of  a  given  size. 

(3).  When  stores  are  classified  by 
size  and  by  expenditures  for 
advertising,  the  amounts  of 
selling  expense  per  $100  of 
total  net  sales  and  per  $100 
of  sales  per  stock  turnover 
increase  as  the  expenditures 
for  advertising  increase. 

(4).  For  stores  with  a  given  ex- 
penditure for  advertising  per 
$100  of  total  net  sales,  the 
amounts  of  selling  expense 
per  $100  of  total  net  sales  and 


also  per  $100  of  total  net  sales 
per  stock  turnover  increase  as 
the  stores  increase  in  size. 

(5).  For  stores  of  a  given  size, 
selling  expenses  per  $100  of 
total  net  sales  for  the  amount 
sold  per  $1  of  average  in- 
ventory, increase  as  the 
amounts  of  advertising  per 
$100  of  total  net  sales  in- 
crease. 

(6).  From  year  to  year,  for  stores 
of  a  given  size,  relatively 
high  amounts  of  advertising 
expenditure  in  terms  of  sales 
accompany  large  decreases  in 
selling  expense  in  terms  of 
sales. 

(7).  In  terms  of  total  expense  and 
of  total  expense  per  stock 
turnover,  the  amounts  of 
selling  expense  show  no  de- 
cided tendency  either  to  in- 
crease or  to  decrease  as  the 
amounts  of  advertising  per 
$100  of  total  net  sales  in- 
crease. 

(8).  Selling  expense  in  terms  of 
sales  alone  is  higher  for  stores 
in  large  cities  than  it  is  for 
those  in  small  cities.  In  terms 
of  sales  per  stock  turn- 
over, the  amount  is  higher 
in  small  than  in  large  cities. 
This  holds  for  all  stores  and 
for  stores  with  a  given  amount 
of  advertising  per  $100  of 
total  net  sales. 

(9).  For  stores  with  a  given 
amount    of    advertising    ex- 


185 


penditure  per  $100  of  total  small  cities  than  it  is  for 
net  sales,  selling  expense  in  stores  in  large  cities, 
terms  of  total  expense  is  (jj)  In  both  small  and  large  cities, 
higher  in  small  than  m  large  ^^^^-^^  expenses  in  terms  of 
^^*^^®-  total  expense  alone  and  of 
(10).  Selling  expense  in  terms  of  total  expense  per  stock  turn- 
total  expense  per  stock  turn-  over  increase  as  the  amounts 
over  is  higher  for  stores  in  of    advertising    per    $100    of 

total  sales  increase. 


186 


IV.    WAGES  AND   SALARIES   CHARGEABLE   TO   SELLING 


1. ^AMOUNTS   OF  WAGES  AND  SALARIES 

FOR    STORES    CLASSIFIED    BY    YEARS, 
BY  SIZE,  AND  BY  LOCATION. 

"Wages  and  salaries"  includes  all 
forms  of  compensation  paid  to  regular 
and  extra  salesmen  and  that  part  of 
the  compensation  of  proprietors, 
bookkeepers,  and  others  which  is 
properly  chargeable  to  selling.  In 
some  of  the  small  stores  it  was  impos- 
sible to  apportion  the  salaries  paid  to 
proprietors  according  to  the  functions 
performed,  and  in  such  cases  the  en- 
tire salary  is  included.  This  fact  will 
help  to  explain,  in  some  instances,  the 
size  of  the  amount  of  wages  and  sal- 
aries expressed  in  terms  of  sales  and 
selling  expense  for  the  group  of 
stores  with  small  annual  sales.  It  is 
felt,  however,  that  the  error  does  not 
seriously  affect  the  totals  inasmuch  as 
most,  if  not  all,  of  the  time  of  the 


proprietors  in  the  very  small  stores  is 
given  to  selling  or  to  supervising  sell- 
ing. 

A. — Yearly  Amounts  of  Wages  and 
Salaries  per  $100  of  Total  Net 
Sales  and  per  $100  of  Selling 
Expense,  1919,  1918,  and  1914. 

The  records  of  154  identical  stores 
for  the  years  1914,  1918,  and  1919  are 
available  for  the  study  of  the  amounts 
of  wages  and  salaries  chargeable  to 
selling.  In  Table  119  these  amounts 
are  expressed  in  terms  of  sales.  In 
1914  it  cost  $7.52  in  wages  and  sal- 
aries to  sell  $100  worth  of  goods.  In 
1918  it  cost  $7.37,  and  in  1919,  $6.98. 
That  is,  between  1914  and  1918,  and 
1918  and  1919,  the  amounts  relative 
to  sales  decreased. 

For  the  154  stores,  as  is  shown  in 
Table  120,  the  average  amount  of 
total  net  sales  per  store  increased  be- 


TABLE  119 

TOTAL    NET    SALES,    WAGES    AND    SALARIES,    AND    AMOUNT    OP    WAGES    AND    SALARIES 
PER  $100   OF  TOTAL  NET  SALES,   FOR   154  IDENTICAL   STORES, 

1919,  1918,  AND  1914 


Number 

of 
Store- 
yeare 

Total 
Net  Sales 

Total 
Wages  & 
Salaries 

Wages  and  Salaries  per  $100  of 
Total  Net  Sales 

Years 

AmoTint 

Per  Cent. 

'^^^P^^^         Actual 
)  20  40  6,0  80  100  120 

Total 

462 

$44,835,499 

$3,255,181 

$7.22 

! 

100.0 

(Average) 

: 

1919 
1918 
1914 

154 
154 
154 

20,892,764 

14,714,515 

9,228,220 

1,457,504 

1,084,125 

693,552 

6.98 
7.37 
7.52 

96.7 
102.1 
104.2 

1 

1 

\ 

Average  $7,22 


187 


TABLE  120 


AVERAGE  AMOUNT  AND  PER  CENT.  INCREASE  OR  DECREASE  OP  TOTAL  NET  SALES  AND 

WAGES  AND  SALARIES  PER  STORE,  AND  AMOUNT  OF  WAGES  AND  SALARIES 

PER  $100  OF  TOTAL  NET  S.VLES,  FOR  154  IDENTICAL  STORES, 

1919,  1918,  AND  1914 


AV«r>gs  ABount  of  Total  Nat  Salss 
p«r  3tor« 

Average  Ajuount  of  Uocoa  and  Salaries 
por  itora 

Average  Amount  of  toa^ea  and  Salaries 
per  tlOO  of   Total  Hat  Sales 

T«ftrf 

Jbwnuit 

P«r  Cant.   Increoaa  over  1914 

Amount 

3 

Par  Cent.   InereaBe  over  1914 

Amount 

Per  Cent.  Decrease  from  1914 

1                      Graphic 
Aetiul     ' 

0      20      40      C-J      30    ICO    120    11 

Graphic 
Aatual  1 

9     20     40     60     80   100   120 

Graphic 
0     20     40     CO     80   100  120 

9i,649 
59,924 

12(;.4 

59.5 

J9,'!64 
7,040 
4,504 

110.1 
60. 3 

•«.9e 

7.S7 
7.52 

7.2 
2.0 

1916 
1914 

3 

tween  1914  and  1918  by  59.5  per  cent. 
and  between  1914  and  1919  by  126.4 
per  cent.  The  corresponding  per- 
centages of  increase  in  wages  and 
salaries  for  the  respective  years  were 
56.3  and  110.1.  That  is,  in  1918  and 
1919,  when  compared  with  1914,  for 
the  same  stores,  wages  and  salaries 
increased  less  than  total  net  sales. 
Accordingly,  when  the  amounts  of 
wages  and  salaries  per  $100  of  total 
net  sales  are  determined  for  the  stores 
in  the  different  years,  the  percentage 
of  decrease  between  1914  and  1918  is 
2.0  and  between  1914  and  1919,  7.2. 

Simultaneous  with  the  increases  in 
wages  and  salaries,  total  selling  ex- 


pense for  the  same  stores  increased 
51.9  per  cent,  between  1914  and  1918, 
and  106.0  per  cent,  between  1914  and 
1919.  When  the  amounts  of  wages 
and  salaries  are  expressed  per  $100 
of  selling  expense  the  average  amount 
in  1914  was  $65.47,  in  1918  $67.35, 
and  in  1919  $66.80.  That  is,  between 
1914  and  1918  the  amounts  increased 
2.9  per  cent,  and  between  1914  and 
1919,  2.0  per  cent.  These  amounts 
are  shown  in  Table  121, 

Summarizing  Tables  119  to  121,  in- 
clusive, one  may  conclude  first,  that 
the  amounts  of  wages  and  salaries  per 
$100  of  total  net  sales  decreased  be- 
tween 1914  and  1918,  and  1918  and 


TABLE  121 

AVERAGE   AMOUNT  AND  PER  CENT.   INCREASE  OF   SELLING  EXPENSE  AND  WAGES   AND 

SALARIES  PER  STORE,  AND  OF  AMOUNT  OF  WAGES  AND  SALARIES  PER 

$100    OF    SELLING    EXPENSE,     FOR     154     IDENTICAL 

STORES,    1919,    1918,    AND    1914 


Averaga  Amount  of  Selling  Expense  per  Store 

Average  Ajno'int   of  Wages  and  Salorlea 
par  Store 

Average  Anount   of  nagea   and  Salaries 
per  $100   of  Selling  Czpenae 

Amount 

Per  Cent.   Increase  over  1914 

Amoijnt 

Per  Cent.   Increase  over  1914 

Amount 

Per  Cent.   Increase  over  1914 

1              Graphic 
Actual     1 

0     20     40     60     80   100   12C 

{              Graph! a 
Actual     1 

0     20     40     60     80   100   120 

1                Graphic 
Aatual       1 

0     20     40     60     80   100   120 

1919 
1918 
1914 

$14,169 
10,452 
8,079 

loe.o 

SI. 9 

t9,464 
7,040 
4,504 

110. 1 
56.5 

$66.90 
67.  J5 
65.47 

^.0 
2.9 

1 

— ^ 

188 


1919,  while  per  $100  of  selling  ex- 
pense they  increased  between  1914 
and  1918  and  decreased  between  1918 
and  1919.  Second,  based  upon  a 
three-year  experience  of  154  stores,  it 
cost  in  wages  and  salaries,  on  an 
average,  $7.22  to  sell  $100  worth  of 
goods.  Third,  the  part  of  total  sell- 
ing expense,  properly  chargeable  to 
wages  and  salaries,  constitutes,  on  the 
average,  for  the  years  in  question, 
$66.69,  or  approximately  two-thirds 
of  the  total.     (Table  123.) 

B. — Yearly  Amounts  of  Wages  and 
Salaries  per  $100  of  Total  Net 
Sales  and  per  $100  of  Selling  Ex- 
pense for  Stores  in  1919,  1918, 
and  1914,  Classified  hy  Size. 

When  the  154  stores  are  classified 
by  size  and  the  amounts  of  wages  and 
salaries  per  $100  of  total  net  sales  are 
computed  for  each  year,  as  in  Table 
122,  it  is  found  that  decreases  in  1918 
and  1919,  compared  with  1914,  char- 
acterize each  group,  with  but  a  single 
exception.  The  average  amount  for 
all  of  the  stores  is  $7.22.  For  those 
with  sales  under  $40,000  it  is  $5.91; 
for  those  with  sales  of  $40,000  to 
$80,000,  $6.51;  for  those  with  sales 
of  $80,000  to  $180,000,  $7.26 ;  and  for 
those  with  sales  of  $180,000  and  over, 
$7.84.  Similar  differences  for  stores 
of  different  size  hold  in  each  of  the 
years. 

Table  123  shows  for  each  group  of 
stores,  classified  by  size,  the  amounts 
of  wages  and  salaries  per  $100  of 
selling  expense  in  each  of  the  years. 
In  every  group,  the  amount  in  1918 
was    higher    than    in    1914.  In     the 


smallest  and  in  the  largest  stores  the 
amounts  were  less  in  1919  than  in 
1918.  In  the  other  two  groups,  how- 
ever, the  reverse  condition  obtains. 
In  all  the  groups  but  one,  the 
amounts  were  higher  in  1919  than  in 
1914. 

As  the  stores  increase  in  size,  the 
amounts  of  wages  and  salaries  per 
$100  of  selling  expense  over  the  whole 
range  decrease.  The  average  for  the 
three-year  period  for  all  the  stores  is 
$66.69.  For  the  three  years  for  the 
small  stores  it  is  $69.56  and  for  the 
others  in  order  of  size,  as  familiarly 
grouped,  $69.67,  $66.61,  and  $65.06. 
From  year  to  year  in  the  groups  clas- 
sified by  size,  the  amounts  closely  cor- 
respond to  the  total;  the  largest 
amount  being  8.0  per  cent,  in  excess 
of  the  average  and  the  smallest  8.9 
per  cent,  less  than  the  average. 

C. — Yearly  Amounts  of  Wages  and 
Salaries  per  $100  of  Total  Net 
Sales  and  per  $100  of  Selling 
Expense,  for  Stores  in  1919, 
1918,  and  1914,  Classified  by  Size 
of  City  in  Which  Located* 

It  is  of  interest  to  compare  the  re- 
lation of  wages  and  salaries  to  sales 
and  to  selling  expenses  from  year  to 
year  for  the  154  stores  under  consid- 
eration when  they  are  classified  by  the 
size  of  the  city  in  which  they  are 
located.  This  is  done  in  Tables  124 
to  127,  inclusive. 

The  115  stores  located  in  the  small 
cities  increased  their  sales  between 
1914  and  1918  by  49.4  per  cent.,  and 
between  1914  and  1919  by  109.4  per 

*  Population  figures  are  for  1920. 


189 


TABLE  122 

TOT.VL  NET  SALES,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  WAGES  AND  SALARIES  PER 

$100  OP  TOTAL  NET  SALES,  FOR  154  IDENTICAL  STORES  CLASSIFIED 

BY    SIZE,    1919,    1918,    AND    1914 


Years 

number 

of 
Store- 
yeara 

Total 
Met  Sales 

Total  Wages 
&  Salaries 

T/agea  and  Salaries  per  $100 
of  Total  Net  Sales 

ClaBSlfled 

Total 
Bet  Sales 
(In  OOO'b) 

Aiaoiait 

Per  Cent. 

Graphic        Actual 
D   20   40   60   80  100  120 

Total 
(Average ) 

462 

344,855,499 

$3,235,181 

$7.22 

100.0 

Total 
(Average ) 

1919 
1918 
1914 

154 
154 

154 

20,892,764 

14,714,515 

9,?28,220 

1,457,504 

1,084,125 

693,552 

6.98 
7.37 
7.52 

96.7 
102.1 
104.2 

Total 
(Average) 

129 

5,590,553 

212,119 

5.91 

i 

61.9 

Under  ^0 

1919 
1918 
1914 

14 

42 
73 

428,714 
1,256,795 
1,905,044 

19,303 

71,393 

121,423 

4.50 
5.68 
6.37 

62.3 
78.7 
88.2 

1 

Total 
(Average) 

172 

9,775,007 

636,559 

6.51 

90.2 

i 

$40  to  |eo 

1919 
1918 
1914 

57 
63 
52 

3,222,468 
3,662,794 
2,889,745 

177,277 
240,074 
219,003 

5.50 
6.55 
7.58 

76.2 

90.7 

105.0 

: 

1 

1 

Total 
(Average ) 

117 

13,695,639 

993, 697 

7.26 

100.6 

j 

180  to  ^180 

1919 
1918 
1914 

58 
35 
24 

6,866,815 
4,090,203 
2,738,621 

492,942 
291,057 
209.698 

7.18 
7.12 
7.66 

99.4 

98,6 

106.1 

; 

Total 
(Average) 

44 

17,774,300 

1,393,006 

7.84 

108.6 

1919 
1918 
1914 

25 

14 
5 

10,374,767 
5,704,725 
1,694,810 

767,982 
481,601 
143,423 

7.40 
8.44 
8.46 

102.5 
116.9 
117.2 

1180  &  over 

: 

Average  |7.22 


cent.  The  corresponding  increases  in 
wages  and  salaries  in  both  years  when 
compared  with  1914  were  43.2  and 
88.6  per  cent,  respectively.  That  is, 
the  increases  in  wages  and  salaries 
were  less  than  were  those  in  sales. 


Accordingly,  when  the  amounts  of 
wages  and  salaries  are  expressed  in 
terms  of  sales  they  decreased  4.2  per 
cent,  between  1914  and  1918,  and 
10.0  per  cent,  between  1914  and  1919. 
The  39  stores  located  in  the  larger 


190 


cities  increased  their  sales  between 
1914  and  1918  by  70.3  per  cent,  and 
between  1918  and  1919  by  144.6  per 
cent.  The  wages  and  salaries  in  these 
same  stores  increased  between  1914 
and  1918  by  68,9  per  cent.,  and  be- 


tween 1914  and  1919  by  130.8  per 
cent.  That  is,  the  percentage  increases 
are  less  in  wages  and  salaries  than  in 
sales  for  both  1918  and  1919  as  com- 
pared with  1914.  If  the  amounts  of 
wages  and  salaries  are  expressed  in 


TABLE  123 

TOTAL  SELLING  EXPENSE,  WAGES  AND  SALARIES,  AND  AMOUNT  OP  WAGES  AND  SALARIES 

PER    $100    OF    SELLING    EXPENSE,    FOR    154    IDENTICAL    STORES 

CLASSIFIED  BY  SIZE,  1919,  1918,  AND  1914 


Classified 

Total 
Net  Sales 

Years 

Ntimber 

of 
Strore- 
yeara 

Total 
Selling 
Expense 

Total 
V/ages  & 
Salaries 

Wages   and  Salaries  per  $100 
of  Selling  Expense 

Arao-ont 

Per  Cent. 

(m  000' s) 

Graphic                      .   ^    , 

Actual 

0      20      40      60      80   100    120 

Total 
(Average) 

462 

$4,851,112 

$3,235,181 

$66.69 

100.0 

Total 

1919 
1918 
1914 

154 
154 
154 

2,182,027 
1,609,671 
1,059,414 

1,457,504 
1,084,125 

693,552 

66.80 
67.35 
65.47 

no  .2 

101.0 
98.2 

(Averaee) 

; 

1 

Total 
(Average ) 

129 

304,954 

212,119 

69.56 

104.3 

Oader  ^0 

1919 
1918 
1914 

14 
42 
73 

29,018 
101, 621 
174,315 

19,303 

71,393 

121,423 

66.52 
70.25 
69.66 

99.7 
105.3 
104.5 

1 

1 

Total 
(Average) 

172 

913,357 

636,359 

69.67 

104.5 

$40  to  $80 

1919 
1918 
1914 

57 
63 
52 

246,  207 
345,293 
321,857 

177,277 
240,074 
219,008 

72.00 
69.53 
68.05 

108.0 
104.3 
102.0 

1 

1 

Total 
(Average ) 

117 

1,491,801 

993,697 

66.61 

99.9 

t 

$eo  to  $180 

1919 
1918 
1914 

58 
35 
24 

719,436 
445,138 
327,227 

492,942 
291,057 
209,698 

68.52 
65.39 
64.08 

102.7 
98.1 
96.1 

! 

i 

Total 
(Average ) 

44 

2,141,000 

1,393,006 

65.05 

97.6 

i 

$180  &  over' 

1919 
1913 
1914 

25 

14 

5 

1,187,366 
717,619 
236,015 

767,932 
481, 601 
143,423 

64.58 
67.11 
60.77 

97.0 

100.6 

91.1 

Average  $66.69 


191 


terms  of  sales,  they  decreased  between 
1914  and  1918  by  0.8  per  cent.,  and 
between  1914  and  1919  by  5.7  per 
cent. 

The  wages  and  salaries  in  terms  of 
sales  for  the  stores  in  the  small,  and 
for  those  in  the  large  cities  decreased 
in  each  of  the  years  1918  and  1919  as 
compared  with  1914.  The  decrease 
was  smaller,  however,  for  the  stores 
in  the  large,  than  for  those  in  the 
small  cities,  notwithstanding  the  fact 
that  the  percentage  increases  in  sales 
for  the  stores  in  the  large  cities  for 
each  of  the  years  1918  and  1919,  as 
compared  with  1914,  exceeded  those 
for  the  stores  in  the  small  cities  by 
20.9  and  35.2  per  cent.,  respectively. 
The  compensating  feature  is  the  rela- 
tively smaller  increase  in  wages  and 
salaries  in  the  stores  in  the  small 
cities.  The  net  result  is  as  stated ;  the 
stores  in  the  small  cities  decreased 
their  wages  and  salaries  in  terms  of 


sales  more  than  those  in  the  large 
cities. 

A  comparison  similar  to  that  in 
Table  124  is  presented  in  Table  125. 
The  115  stores  in  the  small  cities  in- 
creased their  selling  expense  in  1918 
over  1914  by  40.8  per  cent.,  and  in 
1919  over  1914  by  85.4  per  cent.  The 
corresponding  percentage  increases 
for  wages  and  salaries  were,  respec- 
tively, 43.2  and  88.6.  When  the 
amounts  of  wages  and  salaries  attrib- 
utable to  selling  are  expressed  in 
terms  of  selling  expense,  they  are 
found  to  have  increased  between  1914 
and  1918,  and  between  1914  and  1919 
by  1.7  per  cent. 

The  39  stores  in  the  large  cities  in- 
creased their  selling  expense  betw'een 
1914  and  1918  by  61.3  per  cent.,  and 
between  1914  and  1919  by  123.2  per 
cent.  Simultaneously,  they  increased 
their  wages  and  salaries  in  1918  over 
1914  by  68.9  per  cent.,  and  in  1919 


TABLE  124 

RELATION  OP  WASES  AND  SALARIES  TO  TOTAL  NET  SALES,  FOR  154  IDENTICAL  STORES 
CLASSIFIED   BY    SIZE    OF   CITY,    1919,    1918,    AND   1914 


Slza 

of 

City 

(in  OOO's) 

Years 

IKmbor 

of 
Stores 

Bet  Balsa 

Bages  and  Salaries 

Total 

Average  Amount 
per  Store 

Total 

Average  Amount 
per  Store 

Por  $100  of 
Total  Net  Sales 

Amount 

Per  Cent. 
Increase 
over  1914 

Amount 

Per  Cent. 
Increase 
over  1914 

Amount 

Per  Cent. 
Decrease 
from  1914 

Total 
(Avcrago) 

1919 
19ia 

1914 

154 
154 

154 

$20,092,764 
14,714,515 
9,228,220 

$135, 667 
95,549 
59,924 

126.4 
59.5 

$1,457,504 

1,084,125 

693,552 

$9,464 
7,040 
4,504 

UO.l 
56.3 

$6.98 
7.37 
7.52 

7.2 
2.0 

UniJor 
40 

1919 
1918 

1914 

115 
115 
115 

10,005,585 
7,156,283 
4,777,138 

87,005 
62,055 
41,540 

109.4 
49.4 

640,451 
486,175 
339,596 

5,569 
4,228 
2,953 

88.6 
43.2 

6.40 
6.81 
7.11 

10.0 
4.2 

40  &nd 
o»or 

1919 
1918 
1914 

59 
39 
59 

10,887,179 
7,578,232 

4,451,082 

279,158 
194,314 
114,130 

144.6 
70.5 

817,053 
597,949 

355,956 

20,950 
15,332 

9,076 

150,8 
68.9 

7.50 
7.89 
7.95 

5.7 

o.e 

192 


over  1914  by  130.8  per  cent.  That  is, 
wages  and  salaries  in  both  years  in- 
creased more  rapidly  than  did  selling 
expense.  The  consequence  is  that 
when  amounts  of  wages  and  salaries 
are  expressed  per  $100  of  selling 
expense,  they  increased  between  1914 
and  1918  by  4.7  per  cent.,  and  be- 
tween 1918  and  1919  by  3.4  per  cent. 

As  is  shown  in  Table  124,  the  stores 
in  the  small  cities  were  at  an  advan- 
tage over  those  in  the  large  cities  in 
the  amounts  of  wages  and  salaries 
paid  when  they  are  expressed  in  terms 
of  total  net  sales.  An  inverse  condi- 
tion is  found,  as  shown  in  Table  125, 
when  the  amounts  of  wages  and  sal- 
aries are  expressed  in  terms  of  selling 
expense. 

The  same  154  stores  are  classified 
by  size  of  city  in  which  they  are 
located  and  by  years  in  Tables  126 
and  127.  Table  126  shows  the  amounts 


of  wages  and  salaries  per  $100  of  total 
net  sales  for  stores  in  each  city-group 
in  each  of  the  years.  For  the  115 
stores  in  the  small  cities,  the  amounts 
decreased  between  1914  and  1918,  and 
1918  and  1919.  Similarly,  the  amounts 
for  the  39  stores  in  the  large  cities 
decreased  from  year  to  year.  The 
average  amount  of  wages  and  salaries 
per  $100  of  total  net  sales  for  the  345 
store-years  for  stores  located  in  small 
cities  is  $6.69,  or  92.7  per  cent,  of  the 
average  for  all  stores ;  for  the  117 
store-years  for  stores  in  the  large 
cities  it  is  $7.72,  or  106.9  per  cent,  of 
the  average.  Corresponding  differ- 
ences between  the  stores  in  the  small 
and  in  the  large  cities  are  found  for 
each  year. 

In  Table  127  the  stores  are  classified 
as  in  Table  126,  but  the  amounts  of 
wages  and  salaries  are  expressed  per 
$100  of  selling  expense.  The  average 


TABLE  125 

RELATION  OF  WAGES  AND  SALARIES  TO  SELLING  EXPENSE  FOR  154  IDENTICAL  STORES 
CLASSIFIED    BY    SIZE    OF    CITY,    1919,    1918,    AND    1914 


size 
of 

(In  OOO'd) 

Selling  Expense 

iVages  and  Salaries 

Yearo 

Number 

of 
Stores 

Total 

Average  Amount  per 
Store 

Total 

Average  Ano'.mt  per 
Store 

Per  C 

Selling 

100  of 

Expense 

AmoTjnt 

Per  Cent, 
Increase 

Amount 

Per  Cent. 
Increase 

Amount 

Per  Cent. 
Increase 

over  1914 

over  1914 

over  1914 

1919 

154 

J2, 189,027 

tl4,ie9 

106.0 

Si, 457, 504 

59,464 

110.1 

$66.80 

2.0 

Total 
(Average) 

1918 

154 

1,609,671 

10,452 

51.9 

1,084,125 

7,040 

56.3 

67.35 

2.9 

1914 

154 

1,059,414 

6,879 

693, 552 

4,504 

65.47 

1919 

115 

896,863 

7,799 

85.4 

640,451 

5,569 

88.6 

71.41 

1.7 

Under 
40 

1913 

lis 

680,787 

5,920 

40.8 

486,176 

4,228 

43.2 

71.41 

1.7 

1914 

115 

463,712 

4,206 

339,596 

2,953 

70.21 

1919 

39 

1,265,164 

32,953 

123.2 

817,053 

20, 950 

130.8 

63.58 

3.4 

40  and 
over 

1918 

39 

928,884 

23,818 

61.3 

597,949 

15,332 

68.9 

64.37 

4.7 

1914 

39 

575,702 

14,762 

353,956 

9,076 

61.48 

193 


amount  for  the  345  store-years,  for 
the  stores  in  the  small  cities,  is  $71.13, 
for  the  117  store-years,  for  the  stores 
located  in  the  large  cities,  it  is  $63.41. 
That  is,  the  amount  for  the  stores  in 
the  small  cities  is  106.7  per  cent.,  and 
for  those  in  the  large  cities,  95.1  per 
cent,  of  the  average  for  all  stores. 
Similar  differences  for  the  stores  in 
the  different  cities  occur  in  each  of 
the  different  years.  In  1919,  for  in- 
stance, the  average  amount  for  the 
115  stores  in  the  small  cities  was 
$71.41,  and  for  the  39  stores  in  the 
large  cities,  $63.58. 


From  Tables  124  to  127,  inclusive, 
it  may  be  concluded  first,  that  total 
net  sales  and  wages  and  salaries  for 
the  stores  when  classified  by  location 
increased  between  1914  and  1918  and 
between  1914  and  1919.  Second,  the 
amounts  of  wages  and  salaries  per 
$100  of  total  net  sales  decreased  be- 
tween 1914  and  1918,  and  1914  and 
1919,  the  decrease  being  noticeably 
larger  for  the  stores  in  the  small  than 
for  those  in  the  large  cities.  Third, 
amounts  of  selling  expense  and  of 
wages  and  salaries  increased  between 
1914  and  1918,  and  1914  and  1919  for 


TABLE  126 

TOTAL  NET  SALES,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  WAGES  AND  SALARIES  PER 

$100  OF  TOTAL  NET  SALES,  FOR  154  IDENTICAL  STORES  CLASSIFIED 

BY    SIZE    OF    CITY,    1919,    1918,    AND    1914 


Years 

Number 

of 
Store- 
years 

Total 
Net  Sales 

Total  Wages 
&  Salaries 

Wages  and  Salaries  per  $100  of 
Total  Hot  Sales 

Size 
of 

Amoiint 

Per  Cent. 

City 
(In  OOO'b) 

Graphic         Actual 
3  20  40  60  80  100  120 

Total 
(Average) 

462 

§44,835,499 

$3,235,181 

|7.22 

100.0 

j 

1919 
1918 
1914 

154 
154 
154 

20,892,764 

14,714,515 

9,228,220 

1,457,504 

1,084,125 

693,552 

6.98 
7.37 
7.52 

96.7 
102.1 
104.2 

(Average) 

1 

i 

Total 
(Average) 

345 

21,919,006 

1,466,223 

6.69 

92.7 

1 

1919 
1818 
1914 

115 
115 
115 

10,005,585 
7,136,283 
4,777,138 

340,451 
486,176 
339,596 

6.40 
6.81 
7.11 

88.6 
94.3 

40 

; 

Total 
(Average) 

117 

22,916,493 

1,768,958 

7.72 

106.9 

1919 
1918 
1914 

39 
39 
39 

10,887,179 
7,578,232 
4,451,082 

817,053 
597,949 
353,956 

7.50 
7.89 
7.95 

103.9 
109.3 
110.1 

over 

Averaee   ^7.22 


194 


TABLE  127 

TOTAL  SELLING  EXPENSE,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  WAGES  AND  SALARIES 

PER  $100  OF  SELLING  EXPENSE,  FOR  154  IDENTICAL  STORES  CLASSIFIED 

BY    SIZE    OF    CITY,    1919,    1918,    AND    1914 


Size 

of 

City 

Years 

Number 

of 
Store- 
years 

Total 
Selling 
Expense 

Total 
Wages  & 
Salaries 

V/acea  and  Salaries  per  §100 
of  Selling  Expense 

Amoxmt 

Per  Cent. 

(In  000' 3) 

Graphic           ^^t,^^ 
5  20   40  60  80  100  120 

Total 
(Average ) 

462 

$4,351,112 

53,235,181 

§66.69 

100.0 

1 

1919 
1913 

1314 

154 
154 
154 

2,132,027 
1,609,671 
1,059,414 

1,457,504 

1,084,125 

693,552 

66.30 
67.35 
65.47 

100.2 

101.0 

93.2 

Total 
(Average ) 

Total 
(Average ) 

345 

2,061,362 

1,466,223 

71.13 

106.7 

I 

1919 
1913 
1914 

115 
115 
115 

896,863 
630,787 
483,712 

640,451 
486,176 
339,596 

71.41 
71.41 
70.21 

107.1 
107.1 
105.3 

XTnder 
40 

^^^^  1 

Total 
(Average) 

117 

2,739,750 

1,768,953 

63.41 

95.1 

; 

1919 
1913 
1914 

39 
39 
39 

1,235,164 
923,384 
575,702 

817,053 
597,949 
333,956 

63.53 
64.37 
61.43 

95.3 
96.5 
92.2 

40  and 

■ 

; 

Averaso  166.69 


the  groups  of  stores  when  classified  by 
location.  Fourth,  the  amounts  of 
wages  and  salaries  per  $100  of  selling 
expense  increased  for  the  two  groups 
of  stores  between  1914  and  1918,  and 
1914  and  1919,  the  percentage  of  in- 
crease being  larger  for  the  stores  in 
the  large  than  for  those  in  the  small 
cities.  Fifth,  the  amounts  of  wages 
and  salaries  per  $100  of  total  net  sales 
are  less  in  the  combined  and  in  the 
individual  years  for  the  stores  in  the 
small,  than  for  those  in  the  large 
cities.  Sixth,  the  amounts  of  wages 
and  salaries  per  $100  of  selling  ex- 


pense are  less  for  the  combined  and 
individual  years  for  the  stores  in  the 
large  cities  than  for  those  in  the  small 
cities. 

D. — Yearly  Amounts  of  Wages  and 
Salaries  per  $100  of  Total  Net 
Sales  and  per  $100  of  Selling 
Expense,  for  Stores  Classified  by 
Size  and  by  Size  of  City  in  Which 
Located*  1919, 1918,  and  1914. 

In  Tables  128  to  131,  inclusive,  the 
amounts  of  wages  and  salaries  per 
$100  of  total  net  sales  are  shown  for 

*  Population  figures  are  for  1920. 


195 


the  combined  and  individual  years 
for  154  stores  classified  by  location 
and  by  size.  Table  128  refers  to  the 
combined  years  and  Tables  129  to 
131,  respectively,  to  the  years  1919, 
1918,  and  1914. 

The  average  amounts  of  wages  and 
salaries  per  $100  of  total  net  sales  for 
the  462  store-years  is  $7.22.  When 
the  stores  are  classified  by  size,  no  ac- 
count being  taken  of  location,  the 
amounts  increase  as  the  stores  in- 
crease in  size,  the  minimum — $5.91 — 


characterizing  the  stores  with  smallest, 
and  the  maximum — $7.84 — character- 
izing those  with  largest  sales.  In  1919 
the  average  was  $6.98.  For  the  stores 
with  the  smallest  sales  it  was  $4.50 
and  for  those  with  the  largest  sales, 
$7.40.  It  is  unnecessary  to  mention 
the  actual  amounts  for  1918  and  1914. 
The  details  for  each  of  the  years  are 
contained  in  the  total  sections  of  the 
tables  mentioned. 

When  the  stores  are  classified  by 
location  for  the  combined  and  indi- 


TABLE  128 

TOTAL  NET  SALES,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  WAGES  AND  SALARIES  PER 

$100    OF   TOTAL    NET    SALES,    FOR    154    IDENTICAL   STORES    CLASSIFIED    BY 

SIZE   OF    CITY   AND   STORE,    1919,    1918,    AND    1914    COMBINED 


SI  to 

Classified 

Total 
Net  bales 
(in  000' a) 

Humbcr 
of 

St ore - 
years 

Total 
Net  Sales 

Total  V/ages 
k   Salaries 

Wages  and  Salaries  per  $100  of 
Total  Het  Sales 

of 

City 

(m  000' a} 

Amount 

< 

Per  Cent. 

Graphic         Actual 
3  20  40  60   80  100  120 

Total 
(Average ) 

462 

§44,835,499 

$3,255,181 

$7.22 

100.0 

Under  $40 
frtO  to  $80 
|80  to  {180 

$180  &  over 

129 

172 

117 

41 

3,590,553 

9,775,007 

13,695,639 

17,774,300 

212,119 

636,359 

993,697 

1,393,006 

5.91 
6.51 
7.26 
7.84 

81.9 

90.2 

100.6 

108.6 

Total 
(Average) 

Total 
(Averape ) 

■^'■b 

21,919,006 

1,466,223 

6.69 

92.7 

! 

Under  $40  • 
$40  to  $80 
$80  to  $180 

$180  &  over 

121 

138 

77 

9 

3,317,338 
7,650,532 
8,832,022 
2,119,114 

189,920 
481,917 
628,311 
166,075 

5.73 
6.30 
7.11 
7.84 

79.4 

87.5 
,96.5 
108.6 

under 
40 

; 

Total 
(Average ) 

117 

22,916,493 

1,768,958 

7.72 

106.9 

1 

Under  §40 
$40  to  5S0 

$8*  to  $lCa  ■ 
$180  t:   over 

8 

34 
40 
35 

273,215 

2,024,475 

4,963,617 

15,665,186 

22,109 

154,442 

365,386 

1,226,931 

8.13 
7.63 
7.36 
7.84 

112.6 

105.7 
101.9 
108.6 

40  and 

^: 

Aver ago  $7.22 


196 


vidual  years,  a  somewhat  different 
condition  is  observed.  For  the  com- 
bined years,  the  average  amount  of 
wages  and  salaries  per  $100  of  total 
net  sales  for  the  345  store-years  for 
the  stores  in  the  small  cities  is  $6.69, 
and  for  the  117  store-years  for  the 
stores  in  the  large  cities,  $7.72.  That 
is,  the  average  amount  for  the  stores 
in  the  small  cities  is  92.7  per  cent., 
and  for  the  stores  in  the  large  cities 
it  is  106.9  per  cent,  of  the  average 
for  all  stores.    The  differences  in  the 


amounts  for  stores  in  the  two  groups 
of  cities,  treated  as  a  total,  are  also 
characteristic  of  the  stores  differently 
located  but  of  the  same  size.  For  the 
combined  years,  the  average  amount 
for  the  smallest  stores  located  in  the 
small  cities  is  $5.73.  The  correspond- 
ing amount  for  the  stores  in  the  large 
cities  is  $8.13.  For  the  stores  with 
annual  sales  of  $40,000  to  $80,000 
and  located  in  the  small  cities,  it  is 
$6.30;  for  those  of  the  same  size  but 
located  in  the  large  cities,  it  is  $7.63. 


TABLE  129 

TOTAL  NET  SALES,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  WAGES  AND  SALARIES  PER 

$100  OF  TOTAL  NET  SALES,  FOR  154  STORES  CLASSIFIED 

BY  SIZE  OF  CITY  AND  STORE,  1919 


Size 

Claaslfled 

Total 
Het  Salee 
(In  000*8) 

Nimber 

of 
Stores 

Total 
Het  Sales 

Total  Tiages 
&  Salaries 

Wages  ar.u  Salaries  per  OlOO  of 
Total  liet  Sales 

of 

City 

<ln  OOO'e) 

Amount 

< 

Fer  Cent. 

Graphic 
)  20  40  60  80  100  120 

Actual 

Total 
(Average ) 

154 

§20,892,764 

$1,467,504 

§6.98 

lOC.O 

Total 
(Averaga ) 

Under  $40 
$40  to  $80 
§80  to  $180 

$180  &  over 

14 
57 
58 
25 

428, 714 

5,222,468 

6,866,815 

10,374,767 

19, 303 
177,277 
492,942 
767,982 

4.50 
5.50 
7.18 
7.40 

6.40 

64.5 

78.8 

102.9 

106.0 

Total 
(Average ) 

115 

10,005,585 

640,451 

91.7 

! 

Vndor 
40 

Under  $40 
$40  to  $80 
§80  to  $180 

$180  6:  over 

14 

51 

44 

6 

428,714 
2,836,747 
5,255,410 
1,484,714 

19,503 
152, 696 
362,170 
106,282 

4.50 
5.38 
6.69 
7.16 

64.5 

77.1 

98.7 

102.6 

Total 
(Averaee ) 

59 

10,887,179 

817,053 

7.50 

107.4 

i 

40  and. 
over 

Under  $40 
$40  to  $80 
$80  to  §180 

$180  U   over 

6 
14 
19 

385,721 
1,611,405 

8,890,053 

24,581 
130,772 
661,700 

6.37 
8.12 
7.44 

91.3 

lie.  3 

IOC.  6 

Avoraco  v£«98 


197 


TABLE  130 

TOTAL  NET  SALES,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  WAGES  AND  SALARIES  PER 

$100    OF    TOT.VL    NET    SALES,    FOR    154    STORES    CLASSIFIED 

BY  SIZE  OF  CITY  AND  STORE,   1918 


Classified 

Total 
llet  Sales 
(In  OOO's) 

number 

of 
Stores 

Total 
Het  Sales 

Total  T.agea 
&  Salaries 

\/ages  and  Salaries   per  ClOO  of 
Total  Ket  Sales 

Site 

of 

City 

(Id  000'») 

Amount 

C 

Per  Cent. 

Graphic                       1 

1    Actual 
)     20     40      60     80  100   120   140 

Total 
(Average) 

154 

$14,714,515 

$1,084,125 

$7.37 

100.0 

Total 
(ATsrage ) 

Under  $40 
$40  to     $80 
$80  to   $180 

$180  k  over 

42 
63 
35 
14 

1,256,795 
3,662,794 
4,090,203 
5,704,723 

71,393 
240,074 

291,057 
481,601 

5.63 
6.55 
7.12 
8.44 

1 

! 

77.1 

68.9 

96.6 

114.5 

1 

Total 
(Average) 

115 

7,136,283 

486,176 

6.81 

?2,4 

Dndar 

Onder  $40 
$40  to     $80 
$80  to  $180 

$180  J:  over 

41 

49 

22 

3 

1,221,199 

2,776,278 

2,504,412 

634,400 

69, 353 
174,278 
182,752 

59,793 

5.68 
6.28 
7.30 
9.43 

77.1 
85.2 

''^^'^"""      ! 

1D6.0 

1 

Total 
(Averare) 

39 

7,578,232 

597,949 

7.89 

107.1 

« 

40  and 

Under  $40 
$40  to     $80 
$80  to  $180 

$180  t  over 

1 
14 
13 
U 

35,596 

886,522 

1,585,791 

5,070,323 

2,040 
65,796 
103,305 
421,608. 

5.73 
7.42 
6.83 
8.32 

77.7 

100.7 

92.7 

112.9 

Average  $7.37 


As  the  stores  increase  in  size  the  dif- 
ferences between  the  amounts  for  the 
stores  in  the  two  groups  of  cities 
decrease  until  for  the  last  group  they 
are  identical. 

In  1919,  as  shown  in  Table  129,  the 
stores  in  the  small  cities  paid  $6.40  in 
wages  and  salaries  for  every  $100  of 
total  net  sales.  Those  in  the  large 
cities  paid  for  the  same  purpose  $7.50. 
Those  in  the  small  cities  having  sales 
of  $40,000  to  $80,000  paid  $5.38,  and 
those  in  the  large  cities,  $6.37.  Gen- 
erally speaking,  in  each  group  of  cities 


the  amounts  increase  as  the  stores 
increase  in  size,  the  differences  for  the 
stores  in  the  two  city-groups  in  this 
year,  as  in  the  combined  years,  be- 
coming smaller  as  the  stores  increase 
in  size.  It  is  unnecessary  to  call  at- 
tention to  similar  tendencies  for  this 
group  of  stores  in  1918  and  1914. 
The  general  tendencies  are  the  same 
although  the  amounts  are  somewhat 
different.  Both  may  be  observed  by 
consulting  the  tables  in  question. 

Other  statements   of  the   amounts 
of  wages  and  salaries  attributable  to 


198 


selling  in  stores  classified  by  size  and 
by  location  are  found  in  Tables  132 
to  135,  inclusive.  In  these,  the  basis 
of  comparison  is  the  relation  between 
wages  and  salaries  and  selling  ex- 
pense. 

For  all  the  stores  in  the  combined 
years,  $66.69  out  of  every  $100  of 
selling  expense  was  paid  in  the  form 
of  compensation  to  those  engaged  in 
selling  goods.  That  is,  almost  exactly 
two  thirds  of  the  total  selling  expense 
went  to  wages  and  salaries.     Prac- 


tically identical  amounts  characterize 
the  stores  in  the  individual  years,  the 
difference  from  the  amount  for  the 
combined  years  being,  for  1919,  $0.11, 
for  1918,  $0.66,  and  for  1914,  $1.22. 
As  the  stores  increase  in  size,  no  ac- 
count being  taken  of  location,  there  is 
a  rough  tendency  for  the  amounts  to 
decrease.  This  tendency  is  more 
marked  for  the  year  1914  than  for 
either  of  the  other  years,  but,  in 
general,  may  be  said  to  characterize 
them  all. 


TABLE  131 

TOTAL  NET  SALES,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  WAGES  AND  SALARIES  PER 

$100    OF    TOTAL    NET    SALES,    FOR    154    STORES    CLASSIFIED 

BY  SIZE  OF  CITY  AND  STORE,  1914 


Size 

of 

ClDtslfled 

Total 
Net  i.ale9 
(m  OOO's) 

I.'unter 

of 
Stores 

Total 
Net  Sales 

Total  V/aces 
&  Salaries 

(Vages  and  Salnrles  per  $100  of 
Total  Net  Sales 

Amovvnt 

Per  Cent. 

(In  coo's) 

Graphic                          Actual 
D      20      40      60      80    100    120 

Total 
(Avcrice) 

154 

$9,228,220 

5693,552 

C7.52 

i 

100.0 

Unfler  $40 
$40  to     $80 

Seo  to  Jieo 

§160  &  over 

73 

52 

24 

5 

1,905,044 
2,889,745 
2,738,621 

1,694,610 

121,423 
219,008 
209,698 

143,423 

6.3t 
7.58 
7.66 

8.46 

84.7 
100.8 
101.9 
112.5 

Totel 
(Avers CO ) 

i 

; 

1 

Total 
(Average ) 

115 

4,777,138 

339,596 

7.11 

94.6 

Under 
40 

Under  $40 
$40  to     $80 
$60  to  $180 

$180  8c  over 

66 

38 
11 

1,667,425 
2,037,513 
1,072,200 

101,264 
154,943 
83,369 

6.07 
7.  CO 
7.78 

80.7 
lOlJl 
103.6 

j 

Total 
(Average) 

39 

4,451,082 

353,956 

7.95 

105.7 

Under  $40 
$^0  to     $80 

$80  to  Sieo 

$180  &  over 

7 
14 
13 

5 

237,619 

852,232 

1,666,421 

1,694,810 

20,159 

64,065 

126,309 

143,423 

6.48 
7.52 
7.58 
8.46 

112.8 

40  ana 
over 

100. B 
112.5 

^11    1  II 

Average  $7.52 


199 


The  location  of  the  stores,  however, 
seems  to  influence  the  amounts  of 
wages  and  salaries  when  measured  in 
terms  both  of  total  net  sales  and  of 
total  selling  expense.  It  will  be  re- 
membered from  a  discussion  above, 
pages  49  to  52,  that  the  average 
amount  of  selling  expense  per  $100 
of  total  expense,  for  the  stores  taken 
as  a  whole  in  the  small  cities,  is 
slightly  less  than  for  the  stores 
treated  as  a  whole  in  the  large  cities, 


although  the  amounts  for  stores  of 
the  same  size  are  higher  for  the  stores 
in  the  small  cities.  As  is  shown  by 
Tables  132  to  135,  inclusive,  the  aver- 
age amounts  of  wages  and  salaries  per 
$100  of  selling  expense,  for  stores  in 
the  combined  and  in  the  individual 
years,  are  larger  for  the  stores  in  the 
small  than  for  those  in  the  large  cities. 
This  is  true  not  only  for  the  group 
treated  as  a  total,  but  also,  with  minor 
exceptions,  when  stores  of  the  same 


TABLE  132 

TOTAL  SELLING  EXPENSE,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  WAGES  AND  SALARIES 

PER  $100   OF  SELLING   EXPENSE,   FOR    154   IDENTICAL   STORES    CLASSIFIED 

BY  SIZE  OF  CITY  AND  STORE,  1919,  1918,  AND  1914,  COMBINED 


Size 

of 
City 

Classified 

Total 
Bet  Sales 
(In  OOO's) 

Number 

of 
Store- 
years 

Total 
Soiling 
Expense 

Total 
Wage a  & 
Salaries 

Wages  and  Salaries  per  $100 
of  Selling  Expense 

Amount 
( 

Per  Cent. 

(in  OOO's) 

°^^I^^=          Actual 
)  20   40   60   80  100  120 

Total 
(Average) 

462 

♦4,851,112 

$3,235,181 

$66.69 

100.0 

Under  ^0 
^0  to  $00 
$80  to  4130 

tlOO  U   over 

129 

172 

117 

44 

304,954 

913,357 

1,491,801 

2,141,000 

212,119 

636,359 

993,697 

1,393,006 

69.56 
69.67 
66.61 
65. OG 

104.3 

104.5 

99.9 

97,6 

Total 
(Average ) 

Total 
(Average) 

345 

2,051,362 

1,466,223 

71.13 

106.7 

Under  $40 

$40  to  Sao 

580  to  $180 
♦l80  &  over 

121 

138 

77 

9 

276,723 
670,140 
802,563 
221,936 

189,920 
481,917 
620,311 
166,075 

68.63 
71.91 
70.39 
74.83 

102.9 
107.3 
105.5 
112.2 

Onder 
40 

Total 
(Average) 

117 

2,789,750 

1,768,958 

63. •il 

95.1 

Under  $40 
$40  to   too 
$60  to  JlBO 

tieo  &  over 

8 
34 
40 
35 

28,231 

2'»3,217 

599,238 

1,919,064 

22,199 

154,442 

365,386 

1,226,931 

70. G3 
63.50 
60.93 
63.93 

117.9 
95.2 
91.4 
95.9 

40  and 
over 

; 

1 

1 

1 

Average  $66.69 


200 


size,  but  with  different  location,  are 
compared.  It  may  be  worth-while  to 
point  out  for  the  combined  years  the 
comparative  size  of  these  amounts  for 
the  stores  of  the  same  size,  but  with 
different  location. 

For  the  121  store-years  for  the 
stores  with  sales  under  $40,000  and 
located  in  the  small  cities,  the  aver- 
age amount  is  $68.63,  while  for  the  8 
stores  of  the  same  size  located  in  the 
large  cities  it  is  $78.63.     Relatively, 


the  two  amounts  in  relation  to  the 
average  stand  2.9  and  17.9  per  cent, 
higher,  and  relative  to  each  other  they 
stand  in  the  relation  of  100  to  114.6. 
For  the  remaining  groups  of  stores 
in  the  two  city-groups  the  average 
amounts  for  the  stores  in  the  small 
cities  exceed  those  for  the  stores  in 
the  large  cities.  The  percentages  by 
which  the  averages  for  the  stores  in 
the  small  cities  exceed  the  average  for 
all  of  the  stores,  treated  as  a  total, 


TABLE  133 

TOTAL  SELLING  EXPENSE,  WAGES  AND  SALARIES,  AND  AMOUNT  OP  WAGES  AND  SALARIES 

PER  $100  OF  SELLING  EXPENSE,   FOR   154  STORES   CLASSIFIED 

BY    SIZE    OF    CITY    AND    STORE,    1919 


Classified 

Total 
Bet  Sales 
(In  000' a) 

Ktunber 

of 
Stoi^a 

Total 
Selling 
Kxpense 

Total 
Wagaa  * 
SalEO-lea 

Vagea  and  Salaries  per  $100  of 
Selling  Expense 

8it« 

of 

City 

(In  000*a) 

AoBount 

Per  Cent. 

Graphic                  j^otual 
3      20      40      60     80   100  120 

Total 
(Average) 

154 

♦8,188,027 

$1,467,504 

$66.80 

100.0 

i 

Iteder  Uo 
^  to     |80 
|80  to  |180 

#180  *  over 

14 
57 
S8 

25 

29,018 

246,207 

719,436 

1,187,366 

19,903 
177,877 
498,942 
767,982 

66.S» 
72.00I 
68.58 
64.68 

99.6 

107.6 

102.6 

96.8 

Total 
(Average ) 

! 

: 

: 

Total 
(Average) 

116 

696,863 

640,451 

71.41 

106.9 

U&der  #40 
|40  to     t80 
teo  to  #180 

♦l80  &  over 

14 

51 

44 

6 

29,018 
211,678 
509,410 
146,757 

19,303 
152,696 
362, 170 
106,282 

66.52 
72.14 
71.10 
72.42 

99.6 
108.0 
105.4 
108.4 

40 

; 

! 

Total 
(Average ) 

39 

1,285,164 

817,053 

24,581 
150,772 
661,700 

63.58 

71.19 
62.26 
63.59 

95.2 

i 

1 

40  cad 

Under  $40 
|40  to     $80 
$80  to  $180 

llfio  &  over 

6 
14 
19 

34,529 

210,026 

1,040,609 

106.6 
93.2 
95.2 

III^IH^l^^H  ! 

_     I 

Averago  #66.60 


201 


TABLE  134 

TOTAL  SELLING  EXPENSE,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  WAGES  AND  SALARIES 

PER  $100  OF  SELLING  EXPENSE,   FOR   154   STORES   CLASSIFIED 

BY    SIZE    OF    CITY    AND    STORE,    1918 


g' 

Classified 

Total 
llet  Sales 
(In  coo's) 

Uirober 

of 
Stores 

Total 
Selling 
Expense 

Total 
VJages  U 
Salaries 

Waccs  and  Salaries  per  vlOO  of  Selling  Expense 

size 
of 

Amount 

( 

Per  Cent. 

City 
(In  coo'e) 

Graphic 
5     20      40      60      80   100   120   liO   leC 

Actual 

Total 
(Average) 

154 

$1,609,671 

$1,084,125 

$67.35 

100.0 

Under  $40 
$40  to     $80 
$60  to  $180 

$180  &  over 

42 

63 
35 
14 

101,621 
345,293 
445,138 
717,619 

71,393 
240,074 
291,057 
481,601 

70.25 
69.55 
65.59 
67.11 

101.3 

103.2 

97.1 

99.6 

Total 
(Avsrago) 

Total 
(Average) ' 

115 

680,787 

486,176 

71.41 

106.0 

Under  $40 
$40  to  $60 
$60  to  $180 

$180  &  over 

41 

49 

22 

3 

99,513 
244,768 
261,307 

75,179 

69,353 
174,278 
182,752 

59,793 

69.69 
71.20 

69.94 
79.53 

105.5 
105.7 
103.8 
118.1 

Unier 
40 

: 

Total 
(Average) 

39 

928,884 

■     597,949 

64.37 

95.6 

i 

Under  $40 
$40  to     $80 
$80  to  $180 

|180  t  over 

1 
14 
13 

U 

2,108 
100,505 
183,831 
642,440 

2,040 

65,796 
108,305 
421,808 

96.77 
65.47 
56.92 
65.66 

143.7 
97.2 
67.5 
97.5 

40  and 
over 

: 

: 

1                         ,  •■ 

Averace  J67.35 


being,  respectively,  for  the  different 
size-groups,  7.8,  5.5,  and  12.2.  The 
corresponding  percentages  by  which 
the  averages  for  the  stores  in  the  large 
cities  are  less  than  the  average  for  all 
of  the  stores  are  4.8,  8.6,  and  4.1. 

Results  similar  to  those  just  men- 
tioned may  be  secured  by  comparing, 
for  each  of  the  various  years,  stores 
of  similar  size  but  with  different  lo- 
cation. This  the  reader  may  do  by 
consulting  Tables  133  to  135,  inclu- 
sive. 


From  Tables  128  to  135,  inclusive, 
it  may  be  concluded  as  follows :  First, 
the  amounts  of  wages  and  salaries  per 
$100  of  total  net  sales  increase  as  the 
stores  increase  in  size,  this  being  true 
for  the  stores  treated  as  a  whole  and 
with  minor  exceptions  when  treated 
according  to  location.  Second,  the 
amounts  of  wages  and  salaries  per 
$100  of  total  net  sales  are  generally 
lower  for  stores  in  the  small  than  for 
stores  in  the  large  cities,  both  when 
treated  as  a  total  and  when  compared 


202 


TABLE  135 

TOTAL  SELLING  EXPENSE,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  WAGES  AND  SALARIES 

PER  $100  OF  SELLING  EXPENSE,   FOR   154  STORES   CLASSIFIED 

BY    SIZE    OF    CITY    AND    STORE,     1914 


Classified 

Total 
Net  Sales 
(in  OOO'a) 

lluwber 

of 
stores 

Total 
Selling 
Expense 

Total 
Wages  & 
Salaries 

!■ 

V/ages  and  Salaries  per  4lOO 
of  Selling  Expei^se 

of 
City 

Amount 

( 

Per  Cent. 

(In  OOO's) 

Graphic 
3  20  40  60  80  100  12C 

Actual 

Total 
(Average ) 

154 

$1,059,414 

$693,552 

i.65,47 

100.0 

Under  $40 

*4o  to  tec 

$80  to  $180 
5180  k   over 

75 
62 

24 
5 

174,315 
321,857 

527,227 
236,015 

121, ''23 

219,008 
209,698 
143, "23 

69.66 
68.05 
64.08 
60.77 

106.4 

103.9 

97.9 

92. S 

Total 
(Average ) 

: 

I 

Total 

(Average) 

115 

483,712 

339,595 

70.21 

107.2 

Under  ii^O 
$40  to  $80 
$80  to  $160 

$180  &  over 

66 
38 

11 

148,192 
213,674 
121,846 

101,264 

154,943 

83,589 

68.33 
72.51 
68.44 

104.4 
110.8 
104.5 

Under 
40 

Total 
(Average ) 

39 

575,702 

353,956 

61.^ 

93.9 

Under  $40 

$40  to  4eo 

$80  to  $180 
$180  Jc  over 

7 
X4 
13 

5 

26,123 
108, 183 
205,381 
236,015 

20,159 

64,065 

126,309 

143,423 

77.17 
59.22 
61.50 
60.77 

117.9 
90.5 
93.9 
92. S 

40  and 

1 

Average  $55.47 


by  size.  This  condition  is  generally 
true  for  the  combined  and  for  the 
individual  years.  Third,  the  amounts 
of  wages  and  salaries  per  $100  of 
selling  expense  for  stores  in  large 
cities  decrease  as  the  stores  increase 
in  size.  For  those  in  small  cities,  the 
reverse   condition    obtains.      Fourth, 


the  amounts  of  wages  and  salaries  per 
$100  of  selling  expense  for  the  stores 
in  the  small  are  higher  than  for  the 
stores  in  the  large  cities,  both  when 
treated  as  a  whole  and  when  com- 
pared by  size.  This  condition  is  gen- 
erally true  for  the  combined  and  for 
the  individual  years. 


203 


E. — Summary. 

(1).  "Wages  and  salaries  in  terms 
of  sales  decreased  between 
1914  and  1918,  and  1918  and 
1919. 

(2).  Approximately  two  thirds  of 
selling  expense  is  chargeable 
to  the  wages  and  salaries  of 
the  selling  force. 

(3).  Wages  and  salaries  in  terms 
of  total  selling  expense  in- 
creased between  1914  and 
1918,  and  decreased  between 
1918  and  1919. 

(4).  The  amounts  of  wages  and 
salaries  per  $100  of  total  net 
sales  increase  with  the  size  of 
store  for  all  stores,  as  well  as 
for  those  located  in  small  and 
large  cities. 

(5).  The  amounts  of  wages  and 
salaries  per  $100  of  selling 
expense  for  all  stores  and  for 
those  in  large  cities  decrease 
as  the  sales  increase.  The 
amounts  increase  with  size  of 
store  in  small  cities. 

(6).  For  stores  of  the  same  size, 
wages  and  salaries  in  terms  of 
sales  are  higher  in  large  than 
in  small  cities. 

(7).  The  proportion  of  selling  ex- 
pense chargeable  to  wages  and 
salaries  is  higher  in  small 
than  in  large  cities  for  stores 
of  a  given  size. 


2. — YEARLY  AMOUNTS  OF  WAGES  AND 
SALARIES  IN  RELATION  TO  THE 
AMOUNTS  OF  STOCK  CARRIED,  FOR 
STORES  CLASSIFIED  BY  YEARS  AND 
BY    SIZE. 

The  discussion  of  wages  and  salaries 
for  stores  classified  by  the  amounts  of 
inventory  carried  per  $100  of  total 
net  sales  follows  closely  the  corre- 
sponding section,  pages  53  to  85, 
which  relates  to  yearly  amounts  of 
total  selling  expense  for  stores  classi- 
fied in  the  same  manner.  The 
amounts  are  measured  in  terms  of 
sales,  of  selling  expense,  and  of 
other  appropriate  units.  The  methods 
which  are  used  to  secure  the  different 
ratios  are  explained  on  page  4,  and 
do  not  need  to  be  repeated  here. 

A. — Yearly  Amounts  of  Wages  aind 
Salaries  per  $100  of  Total  Net 
Sales  and  per  $100  of  Selling 
Expense,  1919,  1918,  and  1914. 

The  decreases  from  year  to  year  in 
the  amounts  of  wages  and  salaries 
per  $100  of  total  net  sales  for  154 
stores  are  shown  in  actual  amounts 
and  in  graphic  form  in  Table  119. 
Similar  decreases  also  hold  from  year 
to  year  for  the  149  stores  which  are 
discussed  in  this  section.  In  Table 
136  the  amounts  are  shown  to  be 
$7.60  in  1914,  $7.42  in  1918,  and 
$7.04  in  1919.  Moreover,  when  the 
stores  are  classified  in  each  year  by 
the  amounts  of  inventory  per  $100 
of  total  net  sales,  wages  and  salaries 
decrease  generally  from  year  to  year 
for  stores  having  inventories  of  the 
same  size.    There  are  some  exceptions 


204 


to  this  rule,  primarily  due  to  the 
small  number  of  stores  included,  but 
they  cannot  always  be  explained  by 
this  fact.  It  should  be  kept  in  mind 
that  inventories  in  terms  of  sales  were 
relatively  lower  in  1919  than  in 
1914  or  in  1918.  Consequently,  the 
amounts  of  wages  and  salaries  per 
$100  of  total  net  sales  for  stores  in 
the  different  years  may  be  more  ac- 
curately compared  by  considering 
stores  with  inventories  of  the  same 
size  in  the  different  years  than  by 
grouping  the  stores  as  totals.  When 
the  totals  are  compared,  differences 
may  be  ascribed  to  changes  in  wages 
and  salaries  paid,  to  the  increases  or 
decreases  in  the  sales,  or  to  the 
changes  in  the  inventories  in  relation 
to  sales. 

For  each  year  the  amounts  of 
wages  and  salaries  per  $100  of  total 
net  sales  decrease  as  the  inventories 
per  $100  of  total  net  sales  increase. 
The  amount  for  stores  having  inven- 
tories of  less  than  $20  per  $100  of 
total  net  sales  is  exceptionally  low. 
In  the  discussion  of  selling  expense 
per  $100  of  total  net  sales  for  the 
stores  similarly  classified,  it  will  be 
recalled  that  the  same  condition  held. 
It  has  been  pointed  out  that  the  de- 
creases in  the  amounts,  stated  in  terms 
of  sales,  can  be  explained,  in  part  at 
least,  by  the  fact  that  the  large  stores 
have  relatively  high  selling  expenses 
per  $100  of  total  net  sales  and 
relatively  low  inventories,  similarly 
measured.  The  same  observation  ap- 
plies to  the  detail  of  Table  136. 
Inasmuch  as  wages  and  salaries  con- 
stitute on  the  average  66  per  cent. 


of  total  selling  expense,  it  is  to  be 
expected  that  the  nature  of  the  change 
in  the  amounts  of  selling  expense 
will  be  reflected  in  the  amounts  of 
wages  and  salaries. 

The  part  of  Table  136  which  shows 
the  amounts  of  wages  and  salaries  per 
$100  of  total  net  sales  for  each  amount 
sold  per  $1  of  inventory  is  more  sig- 
nificant.* By  the  use  of  this  unit  the 
varying  sizes  of  the  stores  are  elim- 
inated and  the  amounts  of  wages  and 
salaries  per  $100  of  total  net  sales  for 
stores  of  different-sized  inventories 
made  comparable.  It  will  be  seen  by 
consulting  the  table  that  the  amounts 
expressed  in  this  more  detailed  form 
increase  in  each  of  the  years  as  the 
inventories  in  relation  to  sales  in- 
crease. How  generally  this  condition 
obtains,  and  the  regularity  with  which 
the  increases  occur,  are  shown  graph- 
ically and  in  amounts  in  Table  136. 
It  is  unnecessary  in  view  of  the  dis- 
cussion on  page  55  to  comment  fur- 
ther upon  this  tendency.  Attention, 
however,  should  again  be  called  to  the 
fact  that  wages  and  salaries  constitute 
approximately  66  per  cent,  of  the 
total  selling  expense  and  that  the  in- 
fluences which  determine  the  amounts 
of  wages  and  salaries  are  likely  also 
to  determine  the  amounts  of  selling 
expense. 

In  order  to  supplement  Table  136, 
Table  137  has  been  prepared.  This 
table  shows  for  each  of  the  years  the 
average  amounts  of  inventory  per 
$100  of  total  net  sales  for  stores 
classified  by  amounts  of  wages  and 

*  The  method  by  which  this  unit  ia  com- 
puted is  explained  on  page  4,  item  17. 


205 


salaries  paid  per  $100  of  total  net 
sales.  The  average  inventory  per 
$100  of  total  net  sales  decreased  be- 
tween 1914  and  1918,  and  between 
1918  and  1919,  the  reduction  being 
particularly  noticeable  between  1918 
and  1919.  Within  each  year,  more- 
over, the  inventories  decrease  as  the 
amounts  of  wages  and  salaries  per 
$100  of  total  net  sales  increase.  That 
is,  there  is  an  inverse  relationship 
between  inventories  and  wages  and 
salaries  when  both  are  expressed  in 
sales.  A  similar  condition  was  shown 
in  Table  20  for  the  stores  when  classi- 


fied in  each  of  the  years  according  to 
the  amounts  of  selling  expense  per 
$100  of  total  net  sales. 

In  Table  138  the  same  149  stores 
are  classified  in  each  of  the  years 
according  to  the  amounts  of  inven- 
tory per  $100  of  total  net  sales,  and 
for  each  group  of  stores  the  average 
amount  of  wages  and  salaries  per 
$100  of  selling  expense  has  been 
computed.  For  the  combined  years, 
$66.88  out  of  every  $100  of  selling 
expense  was  paid  to  salesmen  in  wages 
and  salaries.  In  1914  the  amount  was 
$65.73,  in  1918,  $67.51,  and  in  1919, 


TABLE  136 

AMOUNT  OP  WAGES  AND  SALARIES  PER  $100  OF  TOTAL  NET  SALES  PER  AMOUNT  SOLD 

PER  $1   OF  INVENTORY,   FOR   149    IDENTICAL   STORES    CLASSIFIED  BY   AMOUNT 

OF  INVENTORY  PER  $100  OF  TOTAL  NET  SALES,  1919,  1918,  AND  1914 


*Dount  cr 
Ijiventrry 
ptr  tlOL  of 

Totol 

Hot  Balea 

Hunber 

or 
store- 
;ear« 

Wagee  and  Salaries  per  $100  of 
Total  Net  Salea 

Vages  and  Salaries  per  $100  of  Total  Net  Salea 
per  Amount  Sold  per  $1  of  Inventory 

tamat 

fer  Cent. 

Amount 

Per  Cent. 

<^^^'                  1   iotual 
0     20     40      60     80   100   120 

"^•P"^"                                 1  Actual 
0     20     40      60     80   100   120   140   160  180 

Total 
(Average) 

447 

$7.28 

100.0 

$S.74 

100.0 

Total 
Uverags) 

Under  $20 
$20  to  $40 
$40  to  $60 
t60  &  over 

14 

168 
177 
68 

6.24 
7.81 
6.70 
6.«S 

72.0 
107.3 
92.0 
88.6 

0.92 
2.S4 
3.55 

4.52 

ss.« 

85.4 

122.5 
165.0 

Total 
(Average) 

149 

7.04 

96.7 

2. SI 

84.9 

— 

1919 

ttafler  $20 
t20  to  $40 
t40  to  $60 
l60  k  over 

7 
63 
51 

e 

S.57 
7.40 
6.S6 
S.14 

7S.8 
101.6 
87.4 
70.6 

0.94 
2.2S 

s.ia 

5.60 

34.3 

81.0 

U6.1 
131.4 

Tct»l 
(Average) 

149 

7,42 

101.9 

5.00 

109.5 

i— i— 

i- 

19IB 

Kaicr  $20 
•20  to  $40 
•40   to  $60 
•£0  t  orer 

3 
46 
60 
40 

3.90 
6.57 
6.27 
6.45 

SS.6 
U7.7 
86.1 
88.6 

0.68 
2.67 
3.14 
4.62 

24.8 
9S.S 
114.6 
165.0 

Total 
(Arer.ee) 

149 

7.60 

104.4 

3.30 

\20.4 

Onaer  $eO 
$20   to  $40 
$40   to  t«0 
$eo  k  over 

4 
S9 
66 
40 

6.95 
7.89 
7.65 
6.86 

9S.5 
108.4 
106.1 

94.2 

1,22 
2.57 
5.8S 
4.80 

^ 

44  .S 

66.5 
139.6 
175.8 

191* 

: 

ATttra«6  |7.£8 


Avorago  #e.74 


206 


$66.98.  That  is,  the  almounts  in- 
creased between  1914  and  1918  and 
decreased  between  1918  and  1919.  A 
similar  condition  was  observed  in 
Table  121  for  154  stores  for  the  same 
years. 

When  the  149  stores  are  classified 
for  each  of  the  years  by  the  amounts 
of  inventory  per  $100  of  total  net 
sales,  as  in  Table  138,  there  is  a  gen- 
eral tendency,  in  the  combined  years, 
for  the  amounts  of  wages  and  salaries 
per   $100   of  selling  expense   to   in- 


crease as  the  inventories  per  $100  of 
total  net  sales  increase.  Those  stores 
which  had  inventories  less  than  $20 
per  $100  of  total  net  sales  had  wages 
and  salaries  per  $100  of  selling  ex- 
pense of  $62,42,  while  those  which 
had  inventories  of  $60  and  over  per 
$100  of  total  net  sales  had  wages  and 
salaries  of  $68.84  out  of  every  $100 
of  selling  expense.  "When  each  of  the 
years  is  considered  separately,  how- 
ever, the  tendency  for  the  amounts  to 
increase  or  to  decrease  with  the  in- 


TABLE  137 

TOTAL  NET  SALES,  INVENTORY,  AND  AMOUNT  OF  INVENTORY  PER  $100  OF  TOTAL  NET 

SALES,  FOR   149   IDENTICAL   STORES   CLASSIFIED   BY   AMOUNT   OF   WAGES   AND 

SALARIES  PER   $100   OF   TOTAL   NET   SALES,    1919,   1918,   AND  1914 


Amount  of 
Wagos  & 
Salaries 
per  $100  of 
Total 
Net  Sal^3 

number 

of 
Stora- 
yaara 

Total 
llet  Sales 

Total 
Inventory 

Inventory  per  $100  of  Total  Net  Sales 

Years 

Amount 

< 

Per  Cent. 

°'^P^^'=          Actual 
>  20  40  60  80  100  120  l40 

Total 
(Average) 

447 

$43,599,972 

$16,369,406 

137.54 

100.0 

Total 

Under  $A 
e4  to  J8 
^  8;  over 

95 
227 
125 

5,689,635 
24,298,967 

13,611,350 

2,268,589 
9,067,776 

5,033,041 

39.87 
37.31 

36.98 

106.2 
99.4 
98.5 

(Average ) 

1 

1 

Total 
(Average ) 

149 

20,303,641 

6,567,056 

32.84 

87.5 

i 

1919 

Dhder  $4 
54  to  $8 
$8  &  over 

42 
71 
35 

3,504,985 
11,248,575 

5,550,081 

1,237,010 
5,679,392 
1,750,654 

35.29 
32.71 

31.54 

94.0 
87.1 
64.0 

! 

Total 
(Average ) 

149 

14, 322, 667 

5,804,340 

40.53 

108.0 

1908 

Unaer  $4 
t4  to  J8 
53  i  over 

34 
70 

45 

1,594,006 
8,149,100 
4,579,553 

736,259 
3,311,650 
1,756,431 

46.19 
40.54 
38.35 

123.0 
108.3 
102.2 

Total 
(Average ) 

149 

8,973,664 

3,898,010 

43.44 

115.7 

1914 

Under  ^ 
^   to  $8 
Sa  &  over 

19 
86 
44 

590,544 
4,901,304 
3,401,716 

295, 320 
2,076,734 
1,525,956 

50.00 
42.37 
43.83 

133.2 
112.9 
116.8 

Average  337.54 


207 


TABLE  138 

TOTAL    SELLING    EXPENSE,    WAGES     AND    SALARIES,    AND    AMOUNTS    OF    WAGES    AND 

SALu^RIES  PER  $100   OF  SELLING  EXPENSE,   FOR   149   IDENTICAL   STORES 

CLASSIFIED    BY    AMOUNT    OF    INVENTORY    PER    $100    OF 

TOT.VL   NET   SALES,    1919,    1918,   AND    1914 


Amount  of 

Inventory 

per  (100  of 

Dotal 
Ket  Sales 

Number 

of 
Store- 
years 

Total 
Selling 
Expense 

Total 
Wages  k 
Salaries 

Wages  and  Salaries  per  (100  of 
Selling  Expense 

YsaW 

Aacunt 

Per  Cent. 

Graphic         Aet,^ 
)   20   40   60   60  100  120 

Total 
(Average) 

447 

(4,745,829 

(5, 174, 021 

(66.83 

100.0 

Uhder  (20 
t20  to  (40 
$40  to  (60 
(60  8:  over 

14 
168 
177 

88 

172,900 
3,088,085 
1,128,967 

555,877 

107,920 

2,066,831 

764,274 

244,996 

62.42 
6e.93 
66.81 
68.84 

95.5 

100.1 

99.9 

102.9 

Total 

(Average ) 

Total 
(Average ) 

149 

2,135^072 

1,430,061 

66.98 

100.1 

rnder  (20 
(20  to  (40 
(40  to  (60 
(60  8c  over 

7 
83 
51 

8 

105,711 

1,649,518 

545,965 

55,878 

64,927 

1,111,412 

230,646 

23,076 

61.42 
67.38 
6«.67 
68.12 

91.8 
100.7 

99.7 
101.9 

1919 

Total 
(Average) 

149 

1,573,249 

1,062,031 

67.51 

100.9 

Onder  (20 
iZO   to  (40 
t40  to  (60 
(60  &  over 

S 

46 
60 
40 

52,117 
937,441 
427,462 
176,229 

20,714 
644,437 
275,422 
121,468 

64.50 
68.74 
64.43 
68.92 

96.4 
102.8 

96.3 
103.1 

1918 

Total 
(Average) 

149 

1,037,508 

681,929 

66.73 

98.3 

: 

Under  (20 
(20  to  (40 
(40  to  (60 
(60  !t  over 

4 
59 
66 
40 

55,072 
501, 126 
555,540 
145,770 

22,279 
510,982 
248,206 
100,462 

63.52 
62.06 
69.81 
68.92 

95.0 

92,8 

104.4 

103.1 

1914 

Average  $66.88 


crease  in  inventories  in  relation  to 
sales  is  uncertain.  It  is  of  interest 
to  observe,  however,  that  in  the  years 
under  consideration,  the  smallest 
amount  of  wages  and  salaries  per 
$100  of  selling  expense  was  less  than 
the  average  by  8.2  per  cent.,  and  the 


largest  amount  greater  than  the 
average  by  4.4  per  cent.  That  is,  a 
remarkable  degree  of  uniformity 
characterizes  the  amounts  for  all 
groups  of  stores  in  the  different  years. 
Similar  uniformity  in  the  amounts 
of  wages   and  salaries  per  $100   of 


208 


TABLE  139 

TOTAL  NET  SALES,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  WAGES  AND  SALARIES  PER 

$100  OF  TOTAL  NET  SALES,  FOR  149  IDENTICAL  STORES  CLASSIFIED  BY  SIZE 

AND   BY    AMOUNT    OF    INVENTORY    PER    $100    OP    TOTAL    NET 

SALES,    1919,    1918,    AND    1914,    COMBINED 


.             , 

ibnount  of 

Inventory 

per  §100  of 

Total 

K«t  Sales 

Nxantier 

of 
Stoi*e- 
yoara 

Total 
Net  Sales 

Total  Wages 
&  Calaries 

V/ages  and  Salaries   per  JlOO  of 
Total  Net  Sales 

Total 
Net  Sales 

For  Cent. 

(In  OOO'a) 

Amount                         Graphic                         Actual 
0     20     40      00     CO   100   120 

Total 
(Average) 

447 

§43,599,972 

§3,174,021 

37.28 

Under  §20 
§20  to  §40 
§40  to  §60 
§60  4  over 

14 
168 
177 

as 

2,059,425 
26,478,436 
11,263,282 

5,798,829 

107,920 

2,066,831 

754,274 

244,996 

5.24 
7.81 
6.70 
6.45 

Total 
(Averagej 

Total 
(Average ) 

127 

3,532,911 

208,053 

5.89 

— 

Under  $40 

Under  §20 
^0  to  §40 
$40  to  §60 
f 60  k  over 

1 
18 
52 
56 

28,933 

560,460 

1,412,525 

I, 530, 993 

720 

53,972 
75,000 
96,361 

2.49 
6.06 
5.31 
6.43 

34.2 
83.2 
72.9 
88.3 

Total 
(Average ) 

165 

9,560,348 

616, 677 

6.59 

90.5 

tbder  §20 
$20  to  §40 
$40  to  §60 
§60  t  over 

6 

52 

82 

^  ■  86 

402,009 
3,083,049 
4,458,869 
1,416,421 

20,502 
187,969 
509,459 

98,767 

5.10 
6.10 
6.94 
6.97 

70.1 
83.8 
95.3 
95.7 

*4o  to  iao 

Total 
(Avarago ) 

112 

13,121,494 

963,555 

7.34 

100.8 

"Under  $20 
fiSO  to  §40 
§40  to  560 
§60  &  over 

5 
60 
40 

7        1 

555,107 
7,076,841 
4,638,131 

851,415 

58,199 
563,284 
514,184 

47,868 

6.88 
7.96 
6.77 
5.62 

94.5 

109.3 

93.0 

$80  to  §180 

Total 
(Average) 

43 

17,585,219 

1,385,756 

7.88 

108.2 

§180  »i  over 

Under  $20 
§20  to  §40 
§4a  to  §60 
§60  &  over 

2 

38 
9 

1,073,375 

15,758,086 

753,757 

48,499 

1,281,606 

65,651 

4.52 
8.13 
7.38 

62.1 
111.7 
101.4 

Average  J7.2a 


209 


total  expense  was  found  to  charac- 
terize the  stores  treated  in  Volume  II  * 
of  the  Bureau's  study  of  Costs,  Mer- 
chandising Practices,  Advertising  and 
Sales  in  the  Eetail  Distributian  of 
Clothin-g.  "Wages  and  salaries,"  as 
there  used,  included  all  forms  of  com- 
pensation paid,  and  "total  expense" 
included  all  operating  expenses.  In 
Table  138,  "wages  and  salaries"  in- 
cludes only  the  compensation  paid  to 
those  who  are  involved  in  selling,  and 
"selling  expense"  is  used  in  the  sense 
defined  on  page  34.  What  is  being 
stressed  now  is  the  uniformity  in  the 
amounts  of  wages  and  salaries  when 
measured  in  terms  of  two  separate 
standards. 

From  Tables  136  to  138,  inclusive, 
it  may  be  concluded:  First,  that  the 
amounts  of  wages  and  salaries  per 
$100  of  total  net  sales  in  the  years 
1919,  1918,  and  1914,  combined  and 
individually,  for  stores  having  inven- 
tories, similarly  measured,  of  $20  and 
over,  decrease  as  the  amounts  of 
inventory  per  $100  of  total  net  sales 
increase.  Second,  the  amounts  of 
wages  and  salaries  per  $100  of  total 
net  sales  decreased  from  1914  to  1918, 
and  1918  to  1919.  Third,  the  amounts 
of  inventory  per  $100  of  total  net 
sales,  in  the  individual  and  in  the 
combined  years,  decrease  as  the 
amounts  of  wages  and  salaries  (in 
terms  of  sales)  increase.  Fourth,  the 
amounts  of  inventory  per  $100  of 
total  net  sales  decreased  between  1914 
and  1018,  and  1918  and  1919.  Fifth, 
the  amounts  of  wages  and  salaries  per 
$100  of  selling  expense  increased  be- 

•  Pages  157  to  164. 


tween  1914  and  1918,  and  decreased 
between  1918  and  1919.  Sixth,  for 
the  combined  years  the  amounts  of 
wages  and  salaries  per  $100  of  selling 
expense  roughly  tend  to  increase  as 
the  amounts  of  inventories  increase. 
For  the  individual  years  the  ten- 
dencies to  decrease  or  to  increase  are 
uncertain. 

B. — Yearly  Amounts  of  Wages  and 
Salaries  per  $100  of  Total  Net 
Sales  and  per  $100  of  Selling 
Expense,  for  Stores  Classified  hy 
Size,  1919,  1918,  and  1914. 

In  Tables  139  to  142,  inclusive,  the 
149  stores  which  are  being  considered 
are  classified  for  the  combined  and 
for  the  individual  years  by  size  and 
by  the  amounts  of  inventory  in  rela- 
tion to  their  sales.  For  each  group 
the  average  amount  of  wages  and 
salaries  paid  by  stores  to  their  selling 
force  has  been  computed  in  terms  of 
sales. 

In  1919  it  cost  in  wages  and  salaries 
$7.04  to  sell  $100  worth  of  goods. 
For  the  stores  with  sales  under  $40,- 
000,  the  cost  was  $4.50 ;  for  those  with 
sales  of  $40,000  to  $80,000  it  was 
$5.54;  for  those  with  sales  of  $80,000 
to  $180,000  it  was  $7.25;  and  for 
those  with  sales  of  $180,000  and  over 
it  was  $7.47.  That  is,  the  amounts 
increase  as  the  stores  increase  in  size. 
When  the  stores  are  classified,  as  in 
Table  140,  by  the  amounts  of  in- 
ventory per  $100  of  total  net  sales, 
increases,  with  few  exceptions,  are 
found  to  characterize  stores  of  in- 
creasing size,  but  with  similar  inven- 
tories in  relation  to  sales.    In  some  of 


210 


TABLE  140 

TOTAL  NET  SALES,  WAGES  AND  SALARIES,  AND  AMOUNT  OP  WAGES  AND  SALARIES  PER 

$100  OF  TOTAL  NET  SALES,  FOR  149   STORES  CLASSIFIED  BY   SIZE  AND  BY 

AMOUNT  OF  INVENTORY  PER  $100  OF  TOTAL  NET  SiVLES,  1919 


CXaaalflod 

Amoxmt  of 

Inventory 

per  $100  of 

Total 

Nat  Sales 

Number 

of 
Stores 

Total 
Net  Sales 

Total  V7ages 
&  Salaries 

V/agoa 

and  Salaries  per  $100  of 
Total  Net  Salep 

Total 
Net  Sales 
(In  coo's) 

Amoiint 

Per  Cent. 

Graphl a 

Actual 

0      20      40      60      80   100    120 

Total 
(Average ) 

149 

$20,303,641 

$1,430,061 

$7.04 

nhder  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

7 
85 
SI 

8 

1.208,113 

15,018,367 

3,628,138 

448,963 

64,927 

1,111,112 

230,64(= 

27,076 

5.37 
7.40 
6.36 
5.14 

76.3 
105  J. 

Total 
(Average ) 

73.0 

Total 
(Average ) 

tftider  $20 
$20  to   $40 
$40  to   $60 
$60  3e  over 

14 

428,714 

19,303 

4.50 

63.9 

Ohder  $40 

2 

8 
4 

68,054 
244,012 
116, 643 

2,640 
10,750 
5,913 

3.38 
4.41 
5.07 

55.1 
62.6 

Total 
(Average) 

55 

3,082,152 

170,682 

5.54 

78.7 

$40   to   $80 

Dhaer  $20 
tf20   to   $40 
$40   to   $60 
$60  5t  over 

2 
22 
28 

3 

150,276 
1,237,723 
1,472,999 

171,154 

5,875 
65,760 
91,847 

7,200 

3.91 
5.11 
6.24 
4.21 

55.5 
72.6 
88.6 
59.8 

Total 
(Average) 

56 

6,607,039 

479,344 

7.25 

103.0 

tTnder  $20 
$20  to  $40 
$40  to   $60 
$60  2c  over 

4 
37 
14 

1 

384,466 
4,382,153 
1,  679,  299 

161,166 

26,569 

326, 696 

116,116 

9,963 

6.91 
7.46 
6.91 
6.18 

98.2 

105.0 
98.2 
87.8 

$80  to  $180 

'; 

Total 
(Average ) 

24 

10,185,686 

760,732 

7.47 

105.1 

$180  &  over 

Under  $20 
$20  to  $40 
$40  to   $60 
$50  &  over 

1 
23 

1 

673, 376 

9,280,432 

231,378 

32, 483 

716,316 

11,933 

4.82 

68.5 

109.7 

73.2 

5.15 

Average  $7.04 

211 


the  groups  the  number  of  stores  is  so 
small,  when  they  are  classified  in  this 
form,  as  to  make  direction  of  change 
uncertain.  The  irregularities  in  the 
amounts,  however,  are  for  the  most 
part  removed  when  the  three  years 


are  combined  as  in  Table  139.  More- 
over, the  tendency  for  the  amounts 
to  increase  is  more  regular  in  1919 
when  a  larger  group  of  stores  is  used 
as  in  Table  144. 

The  amounts  of  wages  and  salaries 


TABLE  141 

TOTAL  NET  SALES,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  WAGES  AND  SALARIES  PER 

$100  OF  TOTAL  NET  SALES,  FOR  149   STORES  CLASSIFIED  BY   SIZE  AND  BY 

AMOUNT  OF  INVENTORY  PER  $100  OF  TOTAL  NET  SALES,   1918 


Anount  of 

Inventory 

per  $100  of 

Total 

Hot  Sales 

number 

of 
Stores 

Total 
net  Sales 

Total  Wages 
&  Salaries 

Wages  and  Salaries  per  $100  of  Total  Net  Sales 

Total 
Net  Sales 
(In  000' e) 

Amount 

C 

Per  Cent; 

'^•''P"'          1  Actual 
20  40  60  60  100  120  140 

Total 
(Average) 

Under  |20 
$20  to  t40 
t40  to  $60 
|60  t  over 

149 

$14,322,667 

$1,062,031 

$7.42 

100.0 

i 

Total 
(Average ) 

5 
46 
60 
40 

530,649 
7,517,748 
4,389,893 
1,884,377 

20,714 
644, 437 
275,422 
121,458 

3.90 
8.57 
6.28 
6.45 

52.6 

115.5 
84.6 
86.9 

Total 
(Average ) 

42 

1,256,795 

71,393 

5.68 

'  76.5 

1 

Ttader  $40 

Older  $20 
|e0  to  $40 
$40  to  $60 
$60  Jt  over 

6 

13 
23 

209,528 
581,fc73 
665,594 

9,878 
17,855 
43,660 

4.71 

4.ee 

6.56 

63.5 
63.1 

88.4 

Total 
(Average ) 

60 

3,501,019 

231,207 

6.60 

89.1 

I 

#40  to  tso 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  It  over 

2 
15 
29 
14 

130,649 

901,852 

1,632,061 

836, 457 

4,698 
67,991 
98^40 
60,578 

3.60 
7.54 
6.01 
7.22 

.  48.5 
101.6 
81.0 
97.3 

1 

J 

i 

Total 
(Average ) 

53 

3,860,130 

277,830 

7.20 

i 

tec  to  tl80 

fodar  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

14 

16 

3 

1,623,524 

1,854,280 

582, 326 

144,701 

US,  709 

17,420 

8.91 
6.24 
4.56 

120.1 

t 

i 
! 

61.5 

Total 
(Average) 

14 

6,704,723 

481,601 

8.44 

^.Mi 

flBO  k  over 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  i  over 

1 
U 
2 

400,000 

4,782,844 

621,879 

16,016 
421,867 
49,7ia 

4.0O 
6.82 
e.38 

53.9 
118.9 
112.9 

i 

Averago  |7.48 


212 


TABLE  142 

TOTAL  NET  SALES,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  WAGES  AND  SALARIES  PER 

$100  OF  TOTAL  NET  SALES,  FOR  149   STORES  CLASSIFIED  BY   SIZE  AND  BY 

AMOUNT  OF  INVENTORY  PER  $100  OF  TOTAL  NET  SALES,  1914 


Classified 

Total 
Het  Sales 
(In  000' 8) 

Amount  of 

Inventory 

per  5 100  of 

Total 

Net  Sales 

Number 

of 
Stores 

Total 
Net  Sales 

Total  Wages 
&  Salaries 

Wages  and  Salaries  per  $100  of 
Total  Het  Sales 

Amoxtnt 

Per  Cent. 

Graphic           .  ^  . 
^                             Actual 

3  20   40   60  80  100  120 

Total 
(Average ) 

149 

$8,973,664 

$681,929 

$7,60 

100.0 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  i  over 

4 

39 
66 
40 

320, 658 
3,942,321 
3,845,201 

1,465,484 

22,279 
310,982 
248,206 
100,  462 

6.95 
7.89 
7.65 
6.86 

91.4 
103.8 
100.7 

90.5 

Total 
(Average ) 

Total 
(Average ) 

71 

1,847,402 

117,557 

6.55 

83.6 

— 

Under  $40 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

1 
10 

?1 
29 

28,935 
282,878 
786,840 
748,751 

720 
21,454 
46,395 
48,788 

2.49 
7.58 
5.90 
6.52 

32.8 
99.7 
77.6 
85.8 

Total 
(Average ) 

50 

2,777*177 

214,788 

7.73 

101.7 

tfader  $20 
$20  to  $40 
$40  to  $60 
$60  S:  over 

2 
15 
25 

8 

121,084 

893,474 

1,553,809 

408,810 

9,929 

54,218 

119,452 

31,189 

8.20 
6.07 
8.82 
7.63 

107.9 
79.9 
116.1 
100.4 

$40  to  $80 

Total 
(Average ) 

25 

2,654,275 

206,361 

7.77 

102.2 

Older  $Sa 
$20  to  $40 
$40  to  $60 
$60  &  oTor 

1 

9 

10 

S 

170,641 
1,071,159 
1,104,552 

507,923 

11,630 
91,887 
82,359 
20,485 

6.82 
8.58 
7.46 
6.65 

89.7 

112.9 

98.2 

87.5 

$80  to  $180 

; 

; 

1 

Total 
(Average) 

S 

1,694,810 

143,423 

8.46 

111.3 

$160  k  over 

Itader  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

5 

1,694,810 

143,423 

8.46 

lll.S 

; 

Average  $7*60 


213 


per  $100  of  total  net  sales,  however, 
in  which  we  are  most  interested,  are 
those  for  stores  of  essentially  the  same 
size,  but  with  different  amounts  of 
inventory  in  relation  to  sales.  These 
amounts  are  found  in  Tables  139  to 


1-42,  inclusive.  "Within  each  group, 
when  the  stores  are  classified  by  size 
and  by  amounts  of  inventory  in  rela- 
tion to  sales,  there  seems  to  be  no 
general  tendency  for  the  amounts  of 
wages  and  salaries  per  $100  of  total 


TABLE  143 

AMOUNT  OF  WAGES  AND  SALARIES  PER  $100  OF  TOTAL  NET  SALES  PER  AMOUNT  SOLD 

PER  $1    OF   INVENTORY,    FOR   STORES    CLASSIFIED   BY    SIZE    AND    AMOUNT    OF 

INVENTORY  PER  $100  OF  TOTAL  NET  S.VLES,  1919,  1918,  AND  1914 


Claaelfied 

Total 
Bst  Sales 
(In  000' 8) 


A&OljLCt    of 

Invactory 

por  $100  of 

Total 

Uet  e&lea 


Aitintmt  of  Wages  and  Salaries  per  $100  of  Total  Net  Sales 
per  Amount  Sold  per  $1  of  Inventory 


Qraphle 


Qraptio 


Oraphlo 


Actual                              .     Actual  .1                       .       Actual  J                        .1    Aet-ial      .... 
jjO     \Z     ^     |6 »p     I?     $;;     $3  $0     »g  ,  U     i^ to     f 2     »4  ip 


Total 
(Aierage) 


Obter  140 


$40  to  tao 


teo  to  |160 


Total 
(Avera.'^) 


$2.74 


Under  $20 
$20  to  ^0 
$40  to  $60 
$S0  i  over 


Total 
(Average ) 


Oodar  $20 
$20  ts  $40 

$40  to  $60 
$60  t  over 


Total 
(Average ) 


IToder  $20 
$20  to  itO 

$10  to  $eo 

$80  8:  OTor 


Total 
(Average! 


Under  $20 
$20  to  $40 
$40  to  $30 
$60  &  over 


$180  k  over 


Total 
(Average) 

Under  $20 
$20  fo  $40 
$40  to  $60 
$60  &  over 


0.92 
2.M 

4.52 


5.31 


0.44 
1.82 
2.66 

4.50 


3.00 


0.89 
1.83 
3.47 

4. eg 


3.3) 
3.93 


:.ci 

0.79 
2.44 

5.69 


$2.51 


Avorage  $2.T4 


0.94 
2.22 

3.18 
3.60 


1.16 
2.21 
5.55 


2.30 

0.68 
1.53 
3.12 
e.95 


2.60 


1.21 
2.24 
5.46 
4.33 


2.06 

0.84 
2.32 
2.58 


Avaraso  $2.51 


$3.00 


0.68 
2.57 
3.14 

4.52 


1.41 
2.34 
4.59 


5.27 


0.53 
2.26 
5.01 
S.OS 


2.67 
3.12 
3.19 


2.36 


0.70 

2.55 
4.19 


Average  $3.00 


$3.30 


1.22 
2.37 

3.33 
4.80 


3.57 


2.27 
2.95 
4.56 


3.47 


1.44 

i.sa 

4.41 
5.34 


3.17 


1.19 

2.57 
5.73 
4.66 


£r.-iras9  $3.30 


214 


net  sales  to  increase  or  to  decrease 
as  the  amounts  of  inventory  per  $100 
of  total  net  sales  increase.  In  some 
groups,  if  the  details  for  the  combined 
years  are  taken  as  an  illustration,  the 
amounts  decrease,  while  in  others 
they  increase.  In  view  of  this  fact, 
it  would  be  unsafe  to  generalize  for 
all  of  the  store-groups.  The  amounts, 
however,  are  of  sufficient  interest  to 
warrant  publication. 

Table   143   shows  what  it  cost  in 
wages  and  salaries  per  $100  of  total 


net  sales  to  sell  the  actual  amounts 
sold  per  $1  of  inventory  *  in  149 
stores  classified  by  size  and  amount 
of  inventory  in  terms  of  sales.  By 
using  this  more  detailed  unit,  the  un- 
certain direction  of  change  for  wages 
and  salaries  is  eliminated.  For  the 
stores  as  grouped,  the  amounts  become 
larger  as  the  size  of  the  inventory  in 
relation  to  sales  increases.  Such  a  con- 
dition for  selling  expense  was  observed 

*  The  method  by  which  this  unit  is  com- 
puted is  explained  on  page  4,  item  17. 


TABLE  144 

AMOUNT  OF  WAGES  AND  SALARIES  PER  $100  OF  TOTAL  NET  SALES  PER  STOCK  TURN- 
OVER, FOR  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT  OP  INVENTORY 
PER   $100   OP   TOTAL   NET   SALES,    1919 


Classiried 

Amount  of 

Inventory 

per  $100  of 

Total 

Het  S&les 

Hmnber 

of 
Storea 

nages  and  Salaries  ner  $100 
Total  Het  Sales 

of 

Wages  and  Salar' 03  per  vlOO  of  Total  Net 
per  Stool:  Turnover 

Sales 

Total 
Net  Sales 
(In  OOO'a) 

Anoust 

Per  Gent. 

Ajmsunt 

Fer  Cent. 

Graphlo 
3  20  40  60  "  CO  100  120 

Actual 

Or»P>il<'            1  Actual 
3  20  40  60  80  100  120  140  160  J30 

Total 
(Avorago) 

282 

$6.67 

100.0 

$3.03 

100.0 

i^ 

Dndar  $20 
$20  ta  $40 
$40  4  over 

17 
155 

112 

5.64 
7.05 

6.07- 

64.6 
105.7 
91.0 

1.28 
2.94 
4.34 

42.2 

(Average ) 

143.2 

Total 
(Average) 

53 

4.26 

63.9 

2.84 

93.7 

ttider  440 

Onder  $20 
$20  to  $40 
$40  t  over 

10 
23 

3.46 

4.64 

— 

S1.9 
69.6 

1.65 
3.57 

— 

54.6 

Total 
(Average ) 

lOS 

5.36 

80.4 

2.98 



— 

$40  te  $80 

Under  $20 
$20  to  $40 
$40  k  over 

3 

45 
58 

3.56 
4.93 
5.84 

53.4 
75.9 
87.6 

0.85 
2.24 

5.89 

28.1 
73.9 

1 

Total 
(Average ) 

98 

6.85 

102.7 

3.61 

Under  $20 
$20  to  $40 
»40  4  over 

S 
63 
50 

6.74 
6.99 
6.59 

101.0 
104.8 
98.8 

1.60 
3.18 
4.39 

■^" 

$80  to  $180 

i 

Total 
(Average ) 

45 

7.15 

107.2 

2.55 

— 

Under  520 
$20  to  $40 
$40  i  over 

9 
55 

1 

5.63 
7.56 
5.15 

84.4 
113.6 
77.2 

1.25 
2.92 
4.29 

$180  k  over 

^^^^"^^   • 

141.6 

Average  06.67 


Average  03*09 


215 


in  the  discussion  of  Table  27  and  it 
■would  naturally  follow  for  wages  and 
salaries,  similarly  measured,  in  view 
of  the  proportion  which  they  consti- 
tute of  total  selling  expense.  Table 
143  should  be  considered  in  connec- 
tion with  Tables  139  to  142,  inclusive. 
In  Table  144,  the  records  of  282 
stores  are  studied  for  1919,  when  the 


stores  are  classified  by  size  and  by  the 
amounts  of  inventory  per  $100  of 
total  net  sales.  In  view  of  the  fore- 
going discussion,  it  is  unnecessary  to 
consider  further  the  amounts  of  wages 
and  salaries  per  $100  of  total  net  sales 
for  the  stores  as  classified.  One  sec- 
tion of  this  table,  however,  is  of 
interest.      The    right-hand    columns 


TABLE  145 

TOTAL  NET  SALES,  IN\'ENTORY,  AND  AMOUNT  OF  INVENTORY  PER  $100  OF  TOTAL  NET 

SALES,  FOR  149  IDENTICAL  STORES   CLASSIFIED   BY   SIZE  AND   BY   AMOUNT 

OF    WAGES    AND    SALARIES    PER    $100    OF    TOTAL    NET    SALES, 

1919,    1918,    AND    1914,    COMBINED 


Classified 

Total 
Net  Sales 
(in  000' 8) 


Amount  or 

Wages  U 

Salaries 

per  SlOO  of 

Total 

Met  SalQS 


Storo- 
yaars 


Total 
Net  Sales 


Inventory  per  $100  of  Total  Net  Sales 


Total 
Inventory 


Qraphlo  I 

0  SO  40  60  80  100  120  140  160 


Total 
(Average ) 


$43,599,972 


$16,369,406 


Total 
(Average ) 


Uhdsr  %\ 

^  to  Ja 
$8  !c  over 


227 
125 


5,689,635 
24,298,987 
13,6U,350 


2,268,589 
9,067,776 
5,033,041 


Total 
(Average ) 


3,532,911 


1,989,518 


Cbder  (40 


Under  $4 
$4  to  $8 
$8  fc  over 


954,235 

1,804,605 

774,073 


502,665 

1,034,030 

462,823 


Total 
(Average ) 


9,360,348 


4,254,795 


|40  to  tBO 


Under  $4 
$4  to  $3 
|8  &  over 


2,315,545 
4,305,648 
2,738,155 


947,850 
2,021,129 
1,285,816 


Total 
(Average) 


13,121,494 


5,193,131 


^0  to  (ISO 


Under  54 
$4  to  $3 
$8  &  over 


1,637,290 
6,151,092 
5,333,112 


631,181 
2,622,806 
1,939,144 


Total 
(Average ) 


17,585,219 


4,931,962 


flBO  &  over 


Under  $4 
$4  to  $8 
^  &  over 


779, 567 
12,039,642 
4,766,010 


186,893 
3,399,811 
1,345,258 


§37.54 


39.87 
57.32 
36.98 


56.31 


52.68 
56.74 
59.79 


45.46 


40.88 
46.96 
46.96 


39.58 


38.55 
42.64 
36.36 


28.05 


23.97 
28.24 
20.23 


«■ 


A-verage  (37. 64 


100.0 


106.2 
99.4 
98.5 


150.0 


140.5 

isia 

1S9.3 


121.1 


108.9 
125.1 
125.x 


105.4 

102.7 

U3.6 
96.9 


74.7 

63.9 
75.2 
75.a 


216 


TABLE  146 


TOTAL  NET  SALES,  INVENTORY,  AND  AMOUNT  OF  INVENTORY  PER  $100  OF  TOTAL  NET 

SALES,  FOR  149  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT  OF  WAGES 

AND    SALARIES    PER    $100    OF    TOTAL    NET    SALES,    1919 


Amount  of 
Wages  Jc 
Salaries 
per  $100  of 
•  Total 
Net  Sales 

Number 

of 
Stores 

Total 
Net  Sales 

Total 
Inventory 

Inventory  per  $100  of  Total  Nat  Sales 

Total 
Net  Sales 
(In  OOO's) 

Amount 

Per  Cent. 

Oraphle                .  ^  . 
Actual 

3  20  40   60  80  100  120  140  160  180  200 

Total 
(Average ) 

149 

SS0,303,641 

$6,667,056 

$32.84 

Total 

Under  $4 
S4  to  J8 
$8  S:  over 

42 
71 
36 

3,504,985 
11,248,575 
5,550,081 

1,237,010 
3,679,392 

1,750,654 

55.29 
32.71 

31.54 

(Average ) 

107.5 

i 

Total 
(Average) 

14 

•   428,714 

215,607 

50.29 

153.1 

: 

ttider  $40 

Under  $4 

$4  to  Se 

$8  &   over 

5 
8 

1 

144,225 
248,945 

35,544 

64,511 
128,272 
22,824 

44.73 
51.53 
64.21 

' 

156.9 
195.5 

Total 
(Average ) 

55 

5,082,152 

1,280,953 

41.56 

126,6 

^  to  $80 

Under  $4 
»4  to  $8 
{8  &  over 

22 
23 
10 

1,226,685 

1,324,685 

530,782 

481, 117 
576,055 
223,781 

i 

132.4 
128.4 

42.16 

Total 
(Average ) 

56 

6,607,089 

2,366,933 

35.82 

1 

109.1 

tao  to  liso 

Under  J4 
$4  to  $8 

tS  U   over 

13 
25 

20 

1,354,508 
2,850,532 
2,402,049 

504,489 

1,055,864 

805,580 

113.4 
112.8 
102.3 

Total 
(Average ) 

24 

10,185,686 

2,803,563 

#180  Se  over 

Under  $4 
«4  to  «8 
t8  ic  over 

2 
17 
5 

779,567 
6,824,413 
2,581.706 

186,893 

1,919,201 

697,469 

23.97 

73.0 

27.02 

82.3 

show,  for  different  groups  of  stores, 
the  amounts  of  wages  and  salaries  per 
$100  of  total  net  sales  per  stock  turn- 
over.* That  is,  wages  and  salaries 
are  measured  in  terms  of  a  unit  of 
sales  for  a  single  turn. 

For  this  group  of  stores,  as  goods 
are  sold,  it  cost  in  wages  and  salaries 
$6.67   to  sell   $100   worth   of   goods, 

*  The  method  by  which  this  unit  is  com- 
puted is  explained  on  page  4,  item  19. 


Average  $32.84 

while  it  cost  in  wages  and  salaries  per 
stock  turnover,  $3.03  to  sell  $100  worth 
of  goods.  The  amounts  of  wages  and 
salaries  required  to  sell  $100  worth  of 
goods  increase  as  stores  increase  in 
size,  but  when  they  are  expressed  in 
terms  of  sales  per  turnover,  they  are 
essentially  constant  for  the  stores 
with  sales  under  $80,000,  increase  for 
those  with  sales  from  $80,000  to  $180,- 
000  and  noticeably  decrease  for  those 


217 


with  sales  of  $180,000  and  over. 
While  the  expense,  due  to  wages  and 
salaries  per  $100  of  total  net  sales  in 
the  stores  with  sales  of  $180,000  and 
over,  is  170.2  per  cent,  of  the  average 
for  all  stores,  the  amount  of  wages 
and  salaries  per  $100  of  total  net  sales 
per  stock  turn  is  84.2  per  cent,  of  the 
average. 
For  the  stores  as  a  whole  and  when 


classified  by  size,  the  amounts  of 
wages  and  salaries  per  $100  of  total 
net  sales  per  stock  turnover  increase 
rapidly  as  the  amounts  of  inventory 
per  $100  of  total  net  sales  increase. 
The  nature  of  the  increase  may  be 
illustrated  by  selecting  the  106  stores 
which  had  sales  in  1919  of  between 
$40,000  and  $80,000.  For  the  three 
stores  which  had  inventories  less  than 


TABLE  147 

TOTAL  NET  SALES,  INVENTORY,  AND  AMOUNT  OF  INVENTORY  PER  $100  OF  TOTAL  NET 

SALES,  FOR  149  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT  OF  WAGES 

AND    SALARIES    PER    $100    OF    TOTAL    NET    SALES,     1918 


/Mount  of 

V/aj;e3  & 

Ealcxles 

per  JlOO  of 

Total 

Net  Sales 

Hujnber 

of 
Stores 

Total 
Net  Sales 

Total 
Inventory 

Inventory  per  $100  of  Total  Net  Sales 

Total 

Amount 

Per  Cent. 

(m  OCO's) 

Graphic                          1     ,    ..     , 
'     Actual 
0     20      40      60     80   100   120   140   160 

Total 
(Avertgg) 

149 

$14,322,667 

$5,804,340 

$40.53 

^^^^^! 

• 

fee or  t4 
14  to  $3 
te  t  over 

34 
70 
45 

1,594,006 
8,149,108 
4,579,553 

736,259 
3,311,650 
1,756,431 

46.19 

40,64 
38.35 

114.0 

Total 
(Average) 

! 

Total 
(Averese) 

42 

1,256,795 

734,523 

58.44 

1*4.2 

tJnder  540 

Under  t-i 
§4  to  J3 
J3  !c  over 

15 
17 

10 

420,124 
502,214 
334, 457 

215,918 
318,849 
199,755 

51.39 
63.49 
59.73 

156.6 

1 

i 

Trtnl 
(Average) 

60 

3,501,019 

1,729,460 

49.40 

121.9 

$40  to  ^0 

Unier  }4 
C4  to  CS 
$8  k  over 

16 
25 
19 

891,100 
1,418,558 
1,191,361 

393,549 
743,552 
592,259 

44.13 
52.42 
49.71 

^\ 

109.0 

129.3 

122.6 

I 

Total 
(Avoi-Bce) 

M 

5,860,130 

1,741,562 

45.12 

111.3 

1 

ieo  to  $180 

toser  ?4 
$4  to  Co 
JS  £c  over 

5 
19 
11 

282,782 
2,351,867 
1,225,381 

126,692 

1,183,993 

430,877 

44.80 
50.34 
35.16 

110.5 

124.2 

86.e 

1 

i 

t 

Iott.1 
(AveiaE* ) 

14 

5,704,723 

1,598,795 

28.03 

69.2 

|iao  U  ovor 

UnCer  t4 
(4  to  $8 
Je  tc  over 

9 

e 

3,876,369 
1,828,354 

1,065,256 
533,539 

27.48 
29.13 

67.a 
72.0 

Averene  S40.53 


218 


TABLE  148 

TOTAL  NET  SALES,  INVENTORY,  AND  AMOUNT  OF  INVENTORY  PER  $100  OF  TOTAL  NET 

SALES,  FOR  149  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT  OF  WAGES 

AND    SiVLARIES    PER    $100    OF    TOTAL    NET    SALES,     1914 


Amount  of 

Waces  k 

Salaries 

per  $100  of 

Total 

Ket  Sales 

number 

of 
Stores 

Total 
Met  Sales 

Total 
Inventor? 

Inventory  per  flOO  of  Total  Net  Sales 

Total 
Net  Sales 

Amount 

( 

Per  Cent. 

(in  000' 3 ) 

°^''P^^°                            Actual 
)   20   40   60  80  100  120  140 

Total 
(Average) 

1-S9 

C8, 973, 664 

53,898,010 

$43.44 

100.0 

Total 

Under  $4 
J4  to  sa 
$8  &  over 

19 

85 
44 

590,644 
4,901,304 
5,481,715 

295,320 
2,076,734 
1,525,956 

50.00 
42.37 
43.83 

115.1 

97.5 

100.9 

(Average ) 

Total 
(Average) 

71 

1,847,402 

1,039,388 

£6.26 

i 

129.5 

Under  }40 

Under  $4 
|4  to  58 
J8  &  over 

15 
41 
IS 

369,884 

1,053,446 

404,072 

222,236 
576,909 
240,243 

57.00 
54.75 
59.46 

131.2 
126.1 

136.  9 

Total 
(Average ) 

50 

2,777,177 

1,244,362 

44.81 

105.3 

J40  to  880 

Under  54 
$4  to  $8 
$8  &  over 

4 
27 
19 

200,760 
1,560,405 
1,016,012 

73,084 
701, 522 
469,776 

36.40 
44.96 
46.24 

I 

83.3 
103.5 
106.4 

Total 
(Average ) 

23 

2,654,275 

1,084,636 

40.86 

94.1 

|80  to  $180 

Under  t-i 
$4  to  ^ 
|8  &  over 

14 
9 

948,593 
1,705,682 

382,949 
701, 687 

40.37 
41.14 

92,9 
94.7 

; 

Total 
(Average) 

5 

1,694,810 

529,604 

31.25 

71.9 

i 

$180  &  over 

Under  04 
$4  to  f8 
§8  8:  over 

4 

1 

1,338,860 
355,950 

415,354 
114,250 

31.02 
32.10 

71.4 
73.9 

AveriiQe  ^43. 44 


$20,  it  cost  in  wages  and  salaries 
$3.56  to  sell  $100  worth  of  goods,  but 
per  turnover  the  expense  was  but 
$0.85.  For  those  that  had  inventories 
between  $20  and  $40  per  $100  of  total 
net  sales,  it  cost  in  wages  and  salaries 
for  each  $100  of  total  net  sales,  $4.93, 


but  for  each  unit  of  sales  per  stock 
turnover,  $2.24.  Similarly,  for  the 
stores  which  had  inventories  of  $40 
and  over,  it  cost  $5.84  for  each  $100 
of  total  net  sales,  but  for  $100  of  sales 
per  stock  turnover  the  amount  was 
$3.89. 


219 


TABLE  149 

TOTAL  SELLING  EXPENSE,  WAGES  AND  SALARIES,  AND  AMOUNT  OP  WAGES  AND  SALARIES 

PEE  $100   OF   SELLING   EXPENSE,   FOR   149   IDENTICAL    STORES    CLASSIFIED 

BY  SIZE  AND  BY  AMOUNT  OF  INVENTORY  PER  $100  OF  TOTAL 

NET    SALES,     1919,    1918,    AND    1914,    COMBINED 


Classiricd 

Total 
Vet   Sales 

Amo>int  of 

Invo.'itory 

per  vlOO  of 

Total 

Net  Sal'es 

N'jjnber 

of 
Store- 
years 

Total 
Selling 

Expense 

Total 
Salaries 

Wages  and  Salaries  per  $100  of 
Selling  Expense 

Anoimt 

Per  Cent. 

<ln  OOO's) 

Graphic 

Actual 

)   20   40   60   30  100  120 

Total 
(Average) 

447 

$4,745,829 

$3,174,021 

$66.88 

100.0 

Under  $20 
;j20  to  $40 
$40  to  06O 
Oeo  '-  over 

14 
163 
177 

88 

172,900 

3,038,035 

1,123,957 

355,377 

107, 920 

2,066,831 

754,274 

244,996 

62.42 
66.93 
66.81 
68.34 

93.3 
100.1 

Total 
(Average ) 

; 

. 

10'',  9 

: 

Total 
(Averar^o ) 

127 

298,231 

208,053 

69.75 

Under  020 
$20  to  iiO 
§40  to  $60 
§60  t  over 

1 
18 
52 
56 

948 
54,036 
112,294 
130,953 

720 
33,972 
75,000 
98,361 

75.95 
62.87 
66.79 
75.11 

Under  $40 

94.0 
99.9 

II  III 

112.3 

i 

Total 
(Av'.-rage ) 

165 

877,524 

616,677 

70.27 

105.1 

; 

Under  $20 
$20  to  $40 
•>40  to  $60 
tfSO  k   ovor 

6 
S2 

82 
25 

29,622 
283,795 
428,579 
135,528 

20,502 
187, 969 
309,439 

98,767 

69.21 
66.23 
72.20 
72.88 

103.5 

440  to  $80 

' 

99.0 

103.0 

: 

Total 
(Average) 

112 

1,445,039 

963,535 

66.58 

99.7 

; 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

5 

60 

40 

7 

53,399 
802,575 
499,659 

89,396 

38,199 
563,204 
314, 184 

47,368 

71.54 
70.18 
62.83 
53.55 

$80  to  $ieo 

; 

104.9 

! 

94.0 

I 

80.1 

Total 
(Average) 

43 

2,125,045 

1,385,755 

55.21 

97.5 

I 

; 

^180  o;  over 

Under  $20 
§20  to  $40 
$40  to  $60 
$60  2;  ovor 

2 

38 

3 

88,931 

1,947,679 

88,435 

48,499 

1,281,506 

55,551 

54.54 
65.30 
62.93 

81.5 
98.4 

1 

94.1 

J 

fivorr.;o  06&.Ba 


220 


The  detail  in  Table  144  may  be 
studied  with  profit  by  merchants  who 
are  interested  in  measuring  the  effect 
which  turnover  has  on  wages  and 
salaries  as  a  part  of  selling  costs. 

Tables  145  to  148,  inclusive,  show 
the  amounts  of  inventories  per  $100 
of  total  net  sales  in  the  combined  and 
individual  years  for  stores  classified 
by  size  and  by  the  amounts  of  wages 
and  salaries  paid  per  $100  of  total 
net  sales.  The  purpose  of  these  tables 
is  to  determine  the  average  size  of  the 
inventories  in  terms  of  sales  for  stores 
paying  different  amounts  of  wages 
and  salaries  per  $100  of  total  net 
sales.  When  no  account  is  taken  of 
store  size,  the  inventories  are  lowest 
when  the  amounts  of  wages  and 
salaries  in  terms  of  sales  are  highest. 
That  is,  an  inverse  relationship  ob- 
tains. When  size  of  store  is  con- 
sidered this  relationship  does  not 
hold.  Indeed,  an  inverse  condition 
holds.  That  is,  small  inventories 
generally  accompany  small  amounts 
of  wages  and  salaries  when  both  are 
expressed  in  sales.  In  each  year  the 
size  of  the  inventories  expressed  in 
terms  of  sales  varies  inversely  with 
the  size  of  the  store  similarly  ex- 
pressed. 

Tables  149  to  152,  inclusive,  show 
the  amounts  of  wages  and  salaries  per 
$100  of  selling  expense  for  each  of 
the  years  for  stores  classified  by  size, 
and  further  by  the  amounts  of  inven- 
tories per  $100  of  total  net  sales.  The 
total  sections  of  these  tables  agree 
with  the  details  of  Table  138  and  do 
not  call  for  further  comment.  The 
remaining  parts  of  the  tables  require 


brief  consideration  inasmuch  as  they 
show  the  amounts  of  wages  and  sal- 
aries per  $100  of  selling  expense  for 
stores  classified  by  size  and  by 
amounts  of  inventory  in  terms  of 
sales. 

As  the  stores  increase  in  size,  gen- 
erally speaking,  the  amounts  of  wages 
and  salaries  per  $100  of  selling  ex- 
pense decrease.  There  is  one  excep- 
tion to  this  rule  for  the  combined 
years  and  one  each  for  1919  and  1918. 
Otherwise,  the  condition  is  general. 
What  is  of  most  interest  in  this  con- 
nection, however,  is  not  store  size 
alone,  but  stores  of  the  same  size  with 
varying  inventories.  When  the  de- 
tails are  considered  from  this  point 
of  view  it  is  impossible  to  generalize 
for  all  the  groups  as  to  whether  the 
amounts  increase  or  decrease  as  the 
inventories  increase.  For  some 
groups  of  stores,  as  for  instance  those 
with  sales  of  $80,000  to  $180,000  for 
the  combined  years,  the  amounts  de- 
crease, while  for  other  groups,  as  for 
instance  the  group  with  sales  of 
$40,000  to  $80,000,  there  is  a  tendency 
for  the  amounts  fiirst  to  decrease  and 
then  to  increase  with  increasing  in- 
ventories. 

Nothing  further  need  be  said  con- 
cerning the  amounts  for  stores  with 
different  sales  and  different  inven- 
tories in  relation  to  sales.  The  actual 
figures  are  supplied  for  what  they  are 
worth.  They  constitute  standards  or 
norms  for  these  stores,  and  from  year 
to  year  show  a  remarkable  con- 
sistency. 

Brief  discussion  is  required  of 
Table  153.     In  4is  table  282  stores 


221 


TABLE  150 

TOTAL  SELLING  EXPENSE,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  WAGES  AND  SALARIES 

PER  $100   OF   SELLING   EXPENSE,   FOR   149    STORES   CLASSIFIED   BY   SIZE   AND 

BY  AMOUNT  OF  INV'ENTORY  PER  $100  OF  TOTAL  NET  SALES,  1919 


Clacoiriod 

Kot  e-t3.?8 
(In  OOO'a) 


Total 
(ivor&ee) 


V-.Aer   S-10 


540  to  J 30 


tso  to  Jieo 


$180  u   ov«r 


Amount  of 

Inventory 

per  $100  of 

Total 

Net  Galea 


Total 
(Averaf.'^  5 


Under  $20 
$20  to  $40 

|40  to  $eo 

J60  fc  over 


Total 
(AvarEgo) 


Undoi-  520 
$20   to  $40 
$40   to  §60 
§60  &  over 


Total 
(Averara ) 


Under  fSO 
|20  to  $40 
$40  to  $60 
$60  Is.   over 


Total 
(Average ) 


Under  $20 
$20  to  $40 
$40  to  $60 
$60  t  over 


jjumber 

of 
Stores 


7 

63 
51 

e 


2 
22 

28 
S 


Total 
(Averago ) 


Under  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 


Total 

SelllrAg 
Expense 


$2,135,072 


105,711 

1,649,518 

545,965 

33,673 


29,013 


6,275 

15,797 

6,S45 


233,843 


7,320 

94,720 

122,592 

9,211 


700,800 


34,507 
465,124 
183, 648 

17,721 


1,171,411 


64,084 

1,083,399 

23,928 


Total 
TCt-Ees  k 
Salaries 


$1,430,061 


64,927 

1,111,412 

230,646 

23,075 


19,303 


2,640 
10,750 

5,913 


170, 682 


5,875 

65,760 

91,847 

7,200 


479,344 


26,569 

326,696 

116,116 

9,963 


760,732 


32,483 

716, 316 

11,933 


Wages   btA  Salaries  per  $100  of 
Selling  E>:pense 


Per  Cent. 


Graphic  I 

0   EO   40   60  80  100  120  140 


$60.93 


61.42 
67.33 
65.67 
68.12 


42.07 
68.05 
85.13 


72.99 


80.26 
69.43 

74.92 
78.17 


68.40 


77.44 
70.24 
63.23 
56.22 


64.94 


50.69 
66.12 
49.87 


100,0 

91.7 
100.6 

99.5 
101.7 


62.3 
101.6 
127.1 


109.0 


119.8 
103.7 
111.9 
116.7 


102.1 


115.6 

104.9 

94.4 

83.9 


97.0 


75.7 
98.7 
74.5 


Aver are  $66.98 


222 


TABLE  151 


TOTAL  SELLING  EXPENSE,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  WAGES  AND  SALARIES 

PER   $100   OF   SELLING  EXPENSE,   FOR   149    STORES   CLASSIFIED   BY    SIZE   AND 

BY  AMOUNT  OF  INVENTORY  PER  $100   OF  TOTAL   NET  SALES,   1918 


Amount  of 

Inveitory 

per  vlOO  of 

Total 

Net  Sales 

KijT.ber 

of 
Stores 

Total 
Selling 
Expense 

Total 
nagoa  i 
Salaries 

■./ages  and  Salaries   per  ClOO  of 
Selling  Expcnco 

Clascifiod 

Total 
Net  Sales 

Aroiint 

C 

Per  Cent. 

(in  OOO's) 

)     20      40      eo     80    100    120 

Total 
(Average ) 

149 

$1,573,249 

$1,062,031 

$67.51 

100.0 

Under  $20 
$20   to  $40 
$40  to  $60 
$60  S:  over 

3 
46 
60 
40 

32,117 
937,441 
427,462 
176,229 

20,714 
644,437 
275,422 

121,458 

64.50 
68.74 
64.43 
63.92 

: 

Total 
(Average ) 

101.8 
95.4 

103.1 

Total 
(Average ) 

42 

101,621 

71,303 

70.  ■55 

104.1 

tinder  $40 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  4  over 

6 
13 
23 

17,520 
27,892 
56,209 

9,878 
17,855 
43,660 

56.38 
64.01 
77.67 

• 

83.5 

94.8 

115.0 

; 

■; 

Total 
(Average ) 

60 

331,958 

231,207 

69.65 

103.2 

Under  $20 
$20  to  $40 
$40   to  $60 
$60  &  over 

2 
15 
29 

14 

7,270 

97,097 

144, 693 

82,898 

4,690 
67,991 
98,140 
60, 378 

64.02 
70.02 
67.83 
72.03 

; 

95.7 
103.7 
100.5 
107.9 

$40  to  $80 

Total 
(Average ) 

33 

422,051 

277,830 

65.03 

97.5 

! 

$80  to  $180 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  &  ovep 

14 

16 

3 

194,559 

190,370 

37, 122 

144,701 

115,709 

17,420 

74.37 
60.78 
46.93 

110.2 
90.0 
69.5 

■ 

; 

Total 
(Average ) 

14 

717,619 

481, 601 

67.11 

99.4 

Under  $20 
$20  to  ■iiO 
:J40  to  $60 
ieo  C:  over 

1 

11 

2 

24,847 

628,265 

64,507 

15,016 

421,367 
43,713 

64.46 
67.15 

67.77 

; 

95.5 

99.5 

100.4 

$180  &  over 

I 

1 

i 

Average  $67,51 


223 


TABLE  152 

TOTAL  SELLING  EXPENSE,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  WAGES  AND  SALARIES 

PER  $100   OF   SELLING  EXPENSE,   FOR   149    STORES   CLASSIFIED   BY   SIZE  AND 

BY  AMOUNT  OF  INVENTORY  PER  $100  OF  TOTAL  NET   SALES,   1914 


Amount  of 

Inrentory 

per  $100  of 

Total 

Set  S&laa 

Dumber 

of 
Stores 

Total 
Selling 
Expense 

Total 
Wages  * 
Salaries 

Wages  and  Salaries  per  $100  of 
Selling  Ejcpense 

Total 
Ket  Sales 
(In  OOO'a) 

Amount 

Per  Cent. 

Oraphlc 

Actual 

3   20   40   60   80  100  120 

Total 
(Average ) 

149 

$1,037,508 

$681,929 

$65.73 

100.0 

Tfrulnr  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

4 
39 
66 
40 

55,072 
501,126 
355,540 
145,770 

22,279 

310,  962 
248,206 
100. «92 

63.52 
62.06 
69.81 
68.92 

96.6 

94.4 

106.9 

104.9 

Total 
(ATorage ) 

Total 
(Average ) 

71 

167,592 

117,357 

70.03 

106.5 

Dnder  $20 
$20  to  $40 
§40  to  $60 
$60  fc  over 

1 
10 
31 
29 

948 
30,241 
68,605 
67,798 

720 
21,454 

46,395 
48,788 

75.95 
70.94 
67.63 
71.96 

U5.5 
107.9 

Under  $40 

109.5 

^^^^^^ 

Total 
(Average ) 

50 

311, 723 

214,768 

68.90 

104.8 

Onder  $S0 
$20  to  $40 
$40  to  $60 
$60  &  over 

2 

15 

25 

8 

15,032 

91,978 

161,294 

43,419 

9,929 

54,218 

119,452 

31,189 

65.05 
68.95 
74.06 
71.63 

100.5 
89.7 
112.7 
109.3 

$40  to  $80 

Total 
(Average ) 

23 

322,178 

206,361 

64.05 

97.4 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

1 

9 

10 

3 

19,092 
142,892 
125,641 

34,555 

11,630 
91,887 
82,359 
20,485 

60.92 
64.31 
65.55 
59.29 

92.7 
97.8 
99.7 
90.2 

$80  to  $180 

Total 
(Average) 

5 

236,015 

145,423 

60.77 

92.5 

$180  &  OTer 

Under  $20 
$20  to  $40 
$40  to   60 
$60  k  over 

5 

236,015 

142.423 

60.77 

92.5 

Average  $65.73 


224 


TABLE  153 


AMOUNT  OF  WAGES  AND  SALARIES  PER  $100  OP  SELLING  EXPENSE  PER  STOCK  TURN- 
OVER, FOR  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT  OP  INVENTORY 
PER  $100  OF  TOTAL   NET  SALES,   1919 


Cl.SBiried 

Total 
Net  Sales 

Amount  of 

Inventory 

per  $100  of 

Total 

Met  Sales 

Number 

of 
Stores 

Oa^e  and  Salaries  per  $100  of 
Selling  Expense 

Wages  and  Salaries  per  $100  of  Selling  Sxpense 
per  Stoelc  Turnover 

Onount 

Per  Cent. 

Amount 

Per  Cent. 

<ln  OOO'b) 

°"P"=        1  Actual 
0   20   40   60   80  100  120 

°~'*^''               1  Aetul 

3   20   40   60   80  100  120  140  160  ISO  200 

Total 
(Average) 

282 

$65.67 

1 

100.0 

$29.85 

100.0 

j 

Total 
(ATOrage ) 

Under  $20 
$20  to  $40 
$40  Ic  over 

17 
1S3 
112 

62.55 
65.51 

68.70 

' 

95.2 
99.5 
104.6 

14.21 

27.21 
49.07 

47.6 
91.S 
164.4 

Ttotal 
(Average ) 

J5 

71.09 

108.3 

47.39 

158.8 

Under  $40 

nodsr  $20 
$20  to  $40 
$40  k   over 

10 
25 

60.52 
75.75 

\ 

92.2 
lis. 3 

23.82 
58.25 

96.5 
195.1 

i 

Total 
(Average) 

106 

71.92 

109. S 

39.96 

133.9 

^— 

Dnder  $20 
$20  to  $40 
$40  &  over 

5 
45 
58 

60.89 
69.19 
74.55 

92.7 
105.4 
113.5 

14.50 
31.45 
49.70 

46.6 
105.4 
166.5 

$40  to  $80 

Total 
(Avorage ) 

98 

67.45 

ioe.7 

35.50 

118.9 

— 

Under  $20 
$20  to  $40 
$40  4  over 

6 

65 
50 

76.42 
68.05 
65.24 

U6.4 
103.6 
99.5 

18.20 
30.92 
43.49 

61.0 
10S.6 
145.7 

$60  to  $180 

^""""""^^^^^ 

Total 
(Average ) 

45 

62.93 

95.8 

22.48 

; 

Snder  $20 
$20  to  $40 
$40  4  over 

9 
55 

1 

60.72 
63.58 
49.87 

92.5 
96.8 
75.9 

13.49 
24.4S 
41.56 

45.2 

ei.9 

1S9.2 

JlSO  *  over 

Average  $65.67 


are  classified  for  1919,  by  size  and  by 
the  amounts  of  inventory  in  relation 
to  sales.  For  each  group  of  stores  two 
measures  of  the  amounts  of  wages  and 
salaries  are  supplied.  The  amounts 
are  expressed,  first,  in  relation  to  sell- 
ing expense,  and  second,  in  relation  to 
selling  expense  per  stock  turnover.* 

For  the  282  stores  the  proportion 
which  wages  and  salaries  constitutes 
of  each  $100  selling  expense  is  $65.67. 
As  the  stores  increase  in  size,  this  pro- 

•  The  method  by  which  this  unit  is  com- 
puted is  explained  on  page  4,  item  21. 


Average  $29.85 

portion  decreases,  the  amount  for  the 
stores  with  sales  of  $180,000  and  over 
being  $62.93.  When  the  average 
amount  of  wages  and  salaries  per 
$100  of  selling  expense — $65.67 — is 
expressed  per  stock  turnover,  it  be- 
comes $29.85.  In  other  words,  stock 
is  turned  on  the  average  2.2  times. 
Wages  and  salaries  per  $100  of  total 
selling  expense  per  turnover  decrease 
as  the  stores  increase  in  size,  the 
amount  being  $22.48  for  the  stores 
which  sold,  during  1919,  $180,000 
and  over  worth  of  goods. 


225 


As  the  amounts  of  inventory  in 
relation  to  sales  increase  for  each 
group  of  stores,  as  measured  by  size, 
the  amounts  which  wages  and  salaries 
constitute  of  each  $100  of  selling  ex- 
pense per  turnover  rapidly  increase. 
The  amounts  for  the  group  of  stores 
with  sales  of  $40,000  to  $80,000  may 
be  used  to  illustrate  this.  When  the 
inventories  were  less  than  $20  per 
$100  of  total  net  sales,  it  cost  $14.50 
in  wages  and  salaries  per  $100  of 
selling  expense  per  turnover.  When 
the  inventories  were  $20  to  $40  per 
$100  of  total  net  sales,  the  amount 
was  $31.45,  and  when  the  inventories 
were  $40  and  over,  it  was  $49.70. 
That  is,  the  costs  rapidly  increase  as 
the  inventories  in  terms  of  sales  in- 
crease in  size.  This  is  only  another 
way  of  saying  that,  to  sell  a  given 
amount  of  goods  in  a  year,  the  costs 
attributable  to  wages  and  salaries  in 
relation  to  the  rates  of  turnover 
rapidly  decrease  as  the  inventories  in 
relation  to  the  sales  decrease.  That 
is,  the  cost  per  unit  of  turnover  be- 
comes less  as  the  rates  at  w^hich  the 
stock  is  turned,  increase. 

The  details  of  Table  153  should  be 
considered  in  connection  with  those 
of  Table  144. 

C. — Summary. 

(1).  The  amounts  of  wages  and 
salaries  per  $100  of  total  net 
sales  for  all  stores,  for  each 
of  the  years,  tend  generally 
to  decrease  as  the  amounts  of 
inventory  per  $100  of  total 
net  sales  increase. 


(2).  The  amounts  of  wages  and 
salaries  per  $100  of  total  net 
sales  for  the  amount  sold  for 
each  dollar  of  inventory  and 
also  per  stock  turnover  in- 
crease as  the  size  of  the 
inventory  in  terms  of  sales 
increases.  This  holds  for 
stores  treated  as  a  whole  and 
also  when  classified  by  size. 

(3).  The  amounts  of  wages  and 
salaries  per  $100  of  total  net 
sales  and  per  $100  of  total 
net  sales  for  the  amount  sold 
per  dollar  of  inventory  de- 
creased between  1914  and 
1918,  and  1918  and  1919. 

(4).  The  amounts  of  wages  and 
salaries  per  $100  of  selling 
expense  tend  to  increase  as 
the  inventories  in  terms  of 
sales  increase,  for  all  stores. 
For  stores  of  a  given  size,  the 
direction  of  change  is  un- 
certain. 

(5).  The  amounts  of  wages  and 
salaries  per  $100  of  total  sell- 
ing expense  per  stock  turn- 
over decrease  as  stores  in- 
crease in  size  and  increase  as 
the  amounts  of  inventory  in 
terms  of  sales  increase. 

3. — YEARLY  AMOUNTS  OF  W^AGES  AND 
SALARIES  IN  RELATION  TO  THE 
AMOUNTS  OF  GOODS  SOLD  PER  PULL- 
TIME  SALES-PERSON,  AND  TO  THE 
METHODS  BY  WHICH  SALESMEN  ARE 
PAID,  FOR  STORES  CLASSIFIED  BY 
YEARS,  BY  SIZE,  AND  BY  LOCA- 
TION. 


226 


The  discussion  of  the  amounts  of 
wages  and  salaries  paid  to  those  who 
are  selling  goods  under  the  condition 
established  in  this  section  closely  fol- 
lows the  corresponding  section,  pages 
85  to  127,  relating  to  the  total 
amount  of  selling  expense  for  stores 
similarly  classified.* 

(1) — YEARLY  AMOUNTS  OF  WA6ES 
AND  SALARIES  IN  RELATION  TO 
THE  AMOUNTS  OF  GOODS  SOLD 
PER    FULL-TIME    SALES-PERSON. 

This  section  has  to  do  with  the 
amounts  of  wages  and  salaries  paid 
in  stores  when  they  are  classified  by 
amounts  of  goods  sold  per  full-time 
sales-person;  the  discussion  relating, 
first,  to  stores  in  different  years, 
second,  to  stores  of  different  size,  and 
third,  to  stores  of  different  size  and 
location. 

A. — Yearly  Amounts  of  Wages  and 
Salaries  per  $100  of  Total  Net 
Sales  and  per  $100  of  Selling 
Expense,  1919,  1918,  and  1914. 

The  year-to-year  comparison  of  the 
amounts  of  wages  and  salaries  paid  to 
salesmen  is  based  upon  the  records  of 
the  146  identical  stores  which  are 
discussed  on  page  86.  The  average 
expense  in  wages  and  salaries  to  sell 
$100  worth  of  goods  was  $7.20  for 
1919,  1918,  and  1914,  combined.  In 
1914  the  amount  was  $7.45,  in  1918, 
$7.38,  and  in  1919,  $6.97.  That  is, 
between  1914  and  1918,  and  1918  and 
1919,  the  amounts  decreased  by  0.9 
and  5.6  per  cent.,  respectively.    Dur- 

*  The  methods  by  which  the  amounts  axe 
computed  is  described  on  page  4. 


ing  these  years,  both  sales  and  wages 
and  salaries  were  increasing.  When 
the  amounts  of  wages  and  salaries 
paid  are  expressed  in  terms  of  sales, 
the  decreases  mean  that  from  year  to 
year  the  increase  was  greater  in  sales 
than  in  wages  and  salaries. 

The  amounts  of  wages  and  salaries 
paid  by  stores  to  salesmen  in  each  of 
the  different  years  may  also  be  ex- 
pressed in  terms  of  $1,000  sold  per 
person.  This  is  done  in  Table  154. 
The  reason  for  expressing  the  amounts 
in  this  form  may  be  stated  as  follows : 
The  total  net  sales,  the  amounts  of 
wages  and  salaries,  the  number  of 
salesmen,  and  the  average  amounts  of 
goods  sold  per  salesman,  all  vary  from 
store  to  store.  In  order  to  take  ac- 
count in  a  single  measure,  of  these 
different  conditions,  and  to  reduce 
them  to  a  unit  basis,  use  is  made  of 
this  complex  unit.f 

The  amounts  for  the  combined  and 
the  respective  years  are  $0.45,  $0.66, 
$0.47,  and  $0.34.  That  is,  between 
1914  and  1918,  and  1918  and  1919, 
they  decreased,  the  percentages  of  de- 
crease being  larger  than  when  wages 
and  salaries  are  expressed  in  terms  of 
total  net  sales  alone.  Moreover,  for 
the  stores  in  each  of  the  years  when 
they  are  classified  by  the  amounts  sold 
per  full-time  sales-person,  the  ex- 
penses attributable  to  wages  and 
salaries,  measured  in  this  manner, 
decrease  as  sales  per  full-time  sales- 
person increase.  In  the  combined 
years,  in  the  stores  where  salesmen 

t  The  method  by  which  the  whole  process 
is  carried  out  is  described  by  formula  on 
page  4,  item  22. 


227 


sold  less  than  $12,000  per  year,  the 
average  amount  of  wages  and  salaries 
per  $100  of  sales  for  each  $1,000  sold 
was  $0.84.  For  the  stores  in  which 
salesmen  sold  $32,000  and  over,  the 
corresponding  expense  was  $0.13. 
How  nearly  these  results  are  dupli- 
cated in  the  individual  years  may  be 
seen  by  consulting  the  amounts  and 
their  graphic  representation  in  Table 
154. 


In  Table  155,  for  the  combined  and 
for  each  of  the  years  under  considera- 
tion, the  same  stores  are  classified  by 
the  amounts  of  wages  and  salaries 
paid  per  $100  of  total  net  sales.  For 
each  group  of  stores  the  average 
amount  of  sales  per  full-time  sales- 
person is  calculated.  For  the  com- 
bined years,  salesmen  sold  on  the 
average  $16,149  worth  of  goods.  In 
1914,  1918,  and  1919  the  correspond- 


TABLE  154 

AMOUNT    OP   WAGES   AND   SALARIES   PER   $100    OF    TOTAL    NET    SALES    PER    $1,000    OF 
SALES     PER     FULL-TIME     SALES-PERSON,     FOR     146     IDENTICAL     STORES 
CLASSIFIED  BY  AMOUNT  OF  SALES  PER  FULL-TIME  SALES- 
PERSON,   1919,    1918,    AND    1914 


teomt  of 
Smloi  per 

Full-tUM 

Sales-person 

(ImOOO**) 

timber 

of 
Store- 
yeare 

Oaees  mail  Salaries  per  $100  of 
lotal  Jlet  Sales 

Vagos  an'*  ^^lorlcB  per  ^100  of  Total  Het  Sales 
per  Ol.OOO  of  Sales  per  P«jll-tlne  Salco-percon 

X—xm 

( 

tor  Cent. 

Anount 

Per  Cent. 

)     SO     «     60     80  100   120 

5     20     40     £0     80 

'^'r^i'                                      \    Aetual 
100   120   140   160   180  200   220 

Totol 

433 

?7.20 

100.0 

$0.45 

100.0 

Ojulw  tl2 

tl2  to  tie 

tie  to  t24 

|24  to  tJ2 
♦J2  k  o,er 

ISl 
107 

ua 

S9 

es 

7.86 
7.46 

7.69 

6.01 
4.79 

109.2 
10S.6 
106.8 
8S.S 
66.5 

0.84 
0.54 
0.40 
0.22 
0.13 

166.7 
120.0 
68.9 
48.9 
28.9 

Uwvtti 

• 

- 

i 

Tot.l 
(Xveraje ) 

146 

6.97 

96.8 

0.34 

7S.6 

tbiJer  tl2 
tl2  to  tie 
tie  to  t24 
t24   to  t32 
t52  *  over 

IS 

so 

61 

ei 

19 

S.84 
7.70 
8.20 
5.72 

4.92 

81.1 
106.9 
113.9 
79.4 
60.3 

0.60 
0.55 
0.44 
0.21 
0.13 

155.3 

122.2 
«7,8 
46.7 
28.9 

1919 

Total 
Uvor.Eo) 

ue 

7.S8 

102.5 

0.47 

104.4 

oader  tl2 
ti2  to  tie 
tie  to  t24 

t24   to   t3£ 
♦32  4  oT.r 

50 
42 
S7 
14 

S 

7.27 
7.81 
7.59 
6.80 
S.49 

101.0 
108.5 
102.6 
94.4 
48.5 

0.72 
0.58 
0.37 
0.25 

0.09 

160.0 
128.9 
62.2 

1918 

^■"■^ 

i 

20.0 

tot.1 
(ATorego) 

146 

7. 45 

103.5 

0.66 

146.7 

: 

amor  tl2 
ti2  to  tie 
tie  to  t24 
♦24   to   tS2 
t»  k  orer 

86 
S6. 

20 
4 

I 

8.51 
6.72 
6.57 

e.ie 

1.7« 

118.2 
.95.3 
77.4 

103.5 
24.4 

0.95 

0.48 
0.50 
0.50 
0.05 

211.1 
106.7 
66.7 
66.7 

19U 

■ 

U.l 

AToragtt  |0.4S 


228 


ing  amounts  were,  respectively,  $11,- 
345,  $15,613,  and  $20,437. 

When  the  stores  paid  less  than  $4 
in  wages  and  salaries  per  $100  of 
total  net  sales,  salesmen,  on  the  aver- 
age, for  the  combined  years,  sold 
$17,908;  when  they  paid  $4  to  $8  in 
wages  and  salaries  for  each  $100  sold, 
the  salesmen  sold  on  the  average 
$16,905;  and  when  they  paid  $8  and 
over   the    sales   per   full-time   sales- 


person averaged  $14,177.  As  the 
amounts  paid  in  wages  and  salaries 
per  $100  of  total  net  sales  increase, 
the  sales  per  full-time  sales-person 
decrease.  In  each  of  the  years,  the 
same  general  tendency  with  minor 
exceptions  holds.  The  details  of 
Table  155  supplement  those  of  Table 
154  and  should  be  read  in  connection 
with  them. 

Another  way  of  stating  the  rela- 


TABLE  155 

TOTAL  NET  SALES,  NUMBER  OF  SALES-PEOPLE,  AND  AMOUNT  OF  SALES  PER  FULL-TIME 

SALES-PERSON,    FOR    146    IDENTICAL    STORES    CLASSIFIED   BY    AMOUNT 

OF   WAGES   AND   SALARIES   PER   $100    OF   TOTAL   NET 

SALES,     1919,     1918,     AND     1914 


Amount  of 

V.accs  & 

Salaries 

per  *100  of 

Total 

.'let  Salea 

Kianbep 

of 
Store- 
years 

Total 
Net  Sales 

number 

of 

Sales-people 

Sales  per  Pull-tlao  Soles-person 

Yeara 

Amount 

Per  Cent. 

Graphic 
3     20     40     60     80  100   120   1^0 

'Actual 

Total 
(Average) 

438 

542,655,162 

2,641.4 

$16, 149 

100.0 

Total 

Under  $4 
$4   to  SS 
$8  &  over 

99 
220 
119 

6,131,664 
24,360,036 
12,163,462 

342.4 

1,441.0 

858.0 

17,908 
16,905 
14,177 

110.9 
104.7 
87.8 

(Average ) 

j" 

Total 
(Average ) 

146 

19,931,753 

975.5 

20,437 

126.6 

; 

1919 

Under  $4 
^  to  $8 
$8  &  over 

44 
68 
34 

3,818,599 
10,792,646 
5,320,508 

178.8 
500.3 
296.2 

21,357 
21,572 

132.2 
153.6 
111.2 

! 

1    mill 

Total 
(Average ) 

146 

13,981,287 

895.5 

15,613 

97.7 

1313 

Under  $4 
$4  to  te 
58  8:  over 

35 
67 
44 

1,673,416 
7,945,465 
4, 362, 406 

116.0 
468.5 
311.2 

14,  426. 

89.3 
105.1 
86.8 

Total 
(Average) 

146 

8,742,122 

770.6 

11,  345 

70.3 

1914 

Under  |4 
$4  to  $8 
|8  i  over 

20 
85 
41 

659,649 
5,621,925 
2,480,548 

47.6 
472.4 
250.6 

11,901 
9,898 

^■^ 

73.7 
61.3 

Average  $16,149 


229 


tions  between  wages  and  salaries  paid 
to  salesmen  and  sales  is  shown  in 
Table  156.  For  stores  in  the  com- 
bined years,  the  average  amount  of 
sales  secured  for  each  $100  of  wages 
and  salaries  paid  was  $1,389.  In  1914 
it  was  $1,343,  in  1918,  $1,355,  and  in 
1919,  $1,436.  That  is,  the  average 
amount  increased  slightly  between 
1914  and  1918  and  by  a  larger  margin 
between  1918  and  1919. 

For  the  combined  and  for  the  sep- 
arate years,  the  sales  per  $100  of 
wages  and  salaries  paid,  increase  as 
the  amounts  sold  per  full-time  sales- 
person increase.  That  is,  the  larger 
the  amount  of  goods  sold  by  each 
salesman  in  a  year,  the  greater  is  the 
return  in  sales  to  the  merchant  for 
each  $100  paid  in  the  form  of  wages 
and  salaries.  This  is  only  another 
way  of  saying  that  with  larger  sales 
per  sales-person,  savings  can  be  made 
in  wages  and  salaries  measured  in 
terms  of  total  sales.  The  actual 
amounts  of  sales  secured  for  each 
$100  paid  in  wages  may  be  seen  by 
consulting  Table  156. 

Other  methods  of  stating  the 
amounts  of  wages  and  salaries  paid 
to  salesmen  in  each  of  the  different 
years,  for  stores  classified  by  the 
amounts  of  sales  per  full-time  sales- 
person, are  found  in  Table  157. 

For  the  combined  years,  out  of 
every  $100  of  selling  expense,  $66.88 
was  paid  to  salesmen  in  the  form  of 
wages  and  salaries.  In  1914  the 
amount  was  $65.59,  in  1918,  $67.47, 
and  in  1919,  $67.05.  That  is,  the 
amounts  increased  between  1914  and 
1918  and  slightly  decreased  between 


1918  and  1919.  Generally  speaking,  in 
each  of  the  years  when  all  the  stores 
are  considered,  two  thirds  of  the  total 
selling  expense  is  paid  to  salesmen 
in  the  form  of  wages  and  salaries. 
However,  when  such  amounts  are  ex- 
pressed in  terms  of  total  selling 
expense  for  each  $1,000  sold  per  full- 
time  sales-person  the  direction  of 
change  from  year  to  year  is  differ- 
ent.* For  the  combined  years  the 
average  stated  in  this  form  is  $4.14. 
For  1914  it  was  $5.78,  for  1918,  $4.32, 
and  for  1919,  $3.28.  That  is,  between 
1914  and  1918,  and  1918  and  1919, 
there  was  a  decrease.  This  is  due,  of 
course,  to  the  increased  sales  per  full- 
time  sales-person  in  1918  over  1914, 
and  in  1919  over  1918,  as  shown  in 
Table  155. 

For  the  combined  years,  wages  and 
salaries  per  $100  of  selling  expense 
decrease  as  the  amounts  sold  per  full- 
time  sales-person  increase.  That  is, 
wages  and  salaries  are  relatively 
smaller  proportions  of  total  selling 
expense  in  stores  where  salesmen  sell 
large  than  where  they  sell  small 
amounts  per  year.  This  general  ten- 
dency also  characterizes  1919  and 
1918,  and  1914,  if  the  five  stores  hav- 
ing average  sales  per  full-time  sales- 
person of  $24,000  and  over  in  1914 
are  ignored.  In  comparisons  of  this 
type,  however,  salesmen's  activities 
are  not  reduced  to  a  unit  basis.  This 
is  done  in  the  right-hand  columns  of 
Table  157,  where  w^ages  and  salaries 

*  The  occasions  for  expressing  the  amounts 
in  this  form  are  analogous  to  those  for  ex- 
pressing them  in  a  similar  form  in  terras  of 
sales.  See  page  227  for  a  brief  statement 
of  this  fact. 


230 


TABLE  156 

TOTAL  WAGES  AND  SALARIES,   TOTAL  l^TET  SALES,  AND  AMOUNT   OF   TOTAL  NET   SALES 

PER    $100    OF    WAGES    AND    SALARIES,    FOR    146    IDENTICAL    STORES 

CLASSIFIED    BY    AMOUNT    OF    SALES    PER    FULL-TIME 

SALES-PERSON,  1919,  1918,  AND  1914 


»■              ==: 

Amount  of 
Sales  per 
Full-time 
Sales-person 
(m  OOO's) 

Tlumber 

of 
Store- 
years 

Total  TJaces 
fc  Salaries 

Total 
net  Sales 

, —           J 

Total  Bet  Sales  per  $100  of  Bages  and  Salaries 

Yeare 

Amount 

Per  Cect. 

Graphic                                           1  Actual 
0     20     40     60     80   100   120  140  160  180  200  220 

Total 
(Average ) 

438 

$3,070,748 

$42,656,162 

£1,389 

100.0 

Under  $12 
$12  to  $16 
$16  to  $24 
$24  to  $32 

151 
107 
118 
59 
25 

596,344 
671,268 
1,267,826 
375, 119 
160,192 

7,584,218 

8,997,104 
16,487,408 
6,239,946 
5,346,486 

1,272 
1,540 
1,500 
1,665 
2,089 

91.6 
96.5' 
95.6 
119.7 
150.4 

Total 
(Average ) 

; 

: 

jsi:  «  over 

1          Total 

146 

1,589,275 

19,931,755 

1,456 

; 

105.4 

(Average ) 

Cnder  $12 
$1£  to  $16 
$16  to  $£4 
$24  to  $32 
$52  &  over 

15 
50 
61 
£1 
19 

42,298 
1£9,664 
755,695 
270,722 
151.896 

724,711 
2,202,402 
9,186,759 
4,733,634 
5,084,267 

1,715 
1,298 
1,219 
1,749 
2,051 

123.3 
93.4 
87.8 
125.9 
146.2 

1919 

: 

^^ 

Total 
(Average ) 

146 

1,031,569 

15,981,287 

1,555 

97.6 

nnder  $12 
$12  to  $16 
$16  to  $24 
$24  to  $32 
$52  k  over 

60 
42 
57 
14 
8 

174,483 

521,587 

455,786 

92,487 

7,426 

2,399,066 
4,114,748 
5,894,125 
1,560,445 
212,905 

1,375 
1,280 
1,553 
1,471 
2,867 

: 

1S18 

^^^^ 

92.2 

97.4 

106.9 

206.4 

Total 
(Arrorage ) 

146 

650,904 

8,742,122 

1,543 

i 

Onder  $12 
$12  to  $16 
$16  to  $24 
$24  to  $32 
$52  «  over 

86 
S5 

20 
4 

1 

579»563 

180,217 

76,544 

11,910 

€70 

4,460.441 

2,679,954 

1,406,546 

145,867 

49.314 

1,175 
1,487 
1,795 
1.225 
5.668 

84.6 
107.1 
129.2 

1914 

• 

; 

Average  $1,539 


Pull  length  not  shorn 


are  expressed  in  terms  of  selling  ex- 
pense for  each  $1,000  sold  per  full- 
time  sales-person.*  In  the  combined 
and  in  the  individual  years  the 
amounts  rapidly  decrease  as  the  sales- 

*  The  method  by  which  this  unit  is  com- 
puted is  explained  on  page  4,  item  24. 


men's  sales  increase.  In  the  com- 
bined years  when  salesmen  sold  less 
than  $12,000,  the  cost  in  wages  and 
salaries  measured  in  this  manner  was 
$7.49;  when  they  sold  $32,000  and 
over,  it  was  $1.55. 

In  each  of  the  different  years,  for 


231 


TABLE  157 


AMOUNT  OF  WAGES  AND  SALARIES  PER  $100  OF  SELLING  EXPENSE  PER  $1,000  OF  SALES 

PER  FULL-TIME   SALES-PERSON,   FOR  146   IDENTICAL   STORES  CLASSIFIED 

BY    AMOUNT    OF    SALES    PER    FULL-TIME    SALES-PERSON, 

1919,    1918,    AND    1914 


Aaount  of 
S*loi  p«r 
Pull-tuse 
Salot-permos 
(In  OOO's) 

HuBbor 

of 
Stors- 
Toars 

Wages  aad  Salaries  par  tlOO  of 
SalllBg  Kxpenas 

Vages  and  Salaries  par  tlOO  of  Selling  Bjcpenaa 
tl*000  of  Salea  per  Full-tlsie  Sales-parson 

per 

Jmmmt 
( 

Par  Cant. 

ABOUBt 

< 

Per  Gent. 

£0     40     60     80  100  180 

OrapMo 
1     80     40     60     80  100  120  140  160  180  200 

Aetoal 

total 
(Xrarags) 

438 

t69.ee 

. 

100.0 

»4.14 

100.0 

Ondsr  tl2 
tl2  to  $1S 
tl«  to  tM 

»24  to  Us 
»M  *  OTor 

ISl 
107 

lis 

39 
8S 

TO  .83 
6S.04 
68.SS 
S9.S2 
37.41 

ax>s.o 

101.7 
108.3 
89.4 
85.8 

7.49 
4.96 
3.58 
2.18 
1.S5 

180.9 
U9.8 
86.3 
52.7 
37.4 

Total 

(ATarftt^o) 

; 

i 

Total 
(Averaga) 

146 

67.05 

100.3 

3.88 

79.8 

Dndar  $12 

ti2  to  tie 
tie  to  t24 
tZ4  to  t22 
$52  4  OTor 

U 
SO 
61 

ei 

19 

63.36 
76.04 
Te.S4 
67.84 
67.16 

94.8 
113.7 
108.8 
86.6 
8S.S 

6.51 
5.43 
3.84 

8.08 
1.54 

157.8 
131.8 
92.8 
60.8 
37.2 

1019 

^^^^^^^^     ■ 

1 

Total 
(A»»rag« ) 

146 

6T.47 

100.9 

4.38 

104.3 

Dtadar  tl2 
tl2  to  tlS 
(18  ta  t24 
t24  to  t32 
t}2  k  orer 

SO 

it 
37 
14 

3 

7i'.oe 

69.36 
63.01 
67.24 
62. SO 

106.8 
103.7 

97.8 
100.6 

93.5 

6.99 
6.17 
3.87 
8.46 

1.67 

168.a 
124.9 
79.0 

1913 

^^^■■■■H 

40.3 

; 

total 
(ATarago ) 

146 

65.69 

98.1 

5.78 

139.6 

. 

DBdor  tl2 
tl2  to  tlS 
tie  to  t24 
t24  to  t22 
t32  &  OTar 

86 
3S 
20 

4 

1 

70.77 
60.07 
88.80 
71.68 
61.98 

108.6 
89.8 
M.9 

107.8 
98.6 

7.69 
4.28 
3.05 
2.60 

1.63 

190.& 
103.4 
73.7 
62.8 
39.4 

1914 

IIIIMBI  11    1    1^ 

: 

■MHB 

Average  t66.8 

8 

ATSrsge  #4.14 

stores  classified  by  the  amount  sold 
per  full-time  sales-person,  wages  and 
salaries  expressed  either  in  terms  of 
selling  expense  alone  or  in  terms  of 
selling  expense  for  each  $1,000  sold 
per  full-time  sales-person,  may  be 
seen  by  consulting  Table  157.  The 
direction  of  change  in  the  amounts  is 
evident  from  the  graphic  summary. 
A  brief  summary  of  Tables  154  to 
157,  inclusive,  may  be  expressed  as 


folloM^s:  First,  the  amounts  of  wages 
and  salaries,  measured  in  terms  of 
sales,  and  in  terms  of  sales  for  each 
$1,000  sold  per  full-time  sales-person, 
decreased  between  1914  and  1918, 
and  1918  and  1919.  Second,  the 
amounts  sold  per  full-time  sales- 
person increased  between  1914 
and  1918,  and  1918  and  1919. 
Third,  as  the  amounts  of  wages  and 
salaries  per  $100  of  total  net  sales 


232 


increase,  sales  per  full-time  sales- 
person decrease.  Fourth,  the  amounts 
of  total  net  sales  secured  for  each 
$100  of  wages  and  salaries  paid,  in- 
creased between  1914  and  1918,  and 
1918  and  1919.  Fifth,  as  the  sales 
per  full-time  sales-person  increase, 
wages  and  salaries  in  terms  of  sales 
alone,  or  combined  with  the  amount 
sold  per  sales-person,  decrease.  Sixth, 
the  amounts  of  wages  and  salaries, 
when  expressed  for  each  $100  of  sell- 
ing expense,  increased  between  1914 
and  1918,  and  decreased  between 
1918  and  1919.  When  they  are 
expressed  in  the  complex  unit  they 
decreased  between  1914  and  1918,  and 
1918  and  1919. 

B. — Yearly  Amounts  of  Wages  and 
Salaries  per  $100  of  Total  Net 
Sales  and  per  $100  of  Selling 
Expense,  for  Stores  Classified 
by  Size,  1919,  1918,  and  1914. 

In  the  discussion  of  the  amounts  of 
wages  and  salaries  paid  to  salesmen 
in  stores  of  different  size  and  with 
different  amounts  sold  per  full-time 
sales-person,  the  records  of  two 
groups  of  stores  are  available.  For 
the  year  1919  alone,  as  is  shown  in 
Table  158,  269  stores  may  be  studied. 
Wages  and  salaries  are  measured, 
first,  in  terms  of  sales,  and  second,  in 
terms  of  sales  and  the  rapidity  with 
which  stock  is  turned  in  each  of  the 
groups. 

For  the  269  stores  in  1919  it  cost 
in  wages  and  salaries  paid  to  salesmen 
for  each  $100  of  total  net  sales,  $6.68. 
For  stores  with  sales  under  $40,000, 
the  average  cost  was  $4.19 ;  for  stores 


with  sales  of  $40,000  to  $80,000  it  was 
$5.40 ;  for  stores  with  sales  of  $80,000 
to  $180,000  it  was  $6.72;  and  for 
stores  with  sales  of  $180,000  and  over, 
it  was  $7.28.  That  is,  as  the  stores 
increase  in  size,  the  amounts  paid  in 
wages  and  salaries  per  $100  of  total 
net  sales  increase.  These  increases, 
however,  from  store-group  to  store- 
group  are  probably  better  shown  for 
stores  in  which  the  same  amount  is 
sold  per  full-time  sales-person,  but  in 
which  the  total  sales  are  different. 
Any  one  of  the  groups  of  stores  in 
Table  158  may  be  chosen  to  illustrate 
this.  If  the  stores  are  used  in  which 
the  sales  per  full-time  sales-person 
were  $16,000  to  $24,000  per  year,  the 
expense  attributable  to  selling  in  the 
stores  with  sales  under  $40,000  was 
$4.42.  The  corresponding  amount 
for  those  which  sold  $40,000  to  $80,- 
000  was  $4.69;  for  those  which  sold 
from  $80,000  to  $180,000,  $6.38 ;  and 
for  those  which  sold  $180,000  and 
over,  $9.86.  Similar  differences  are 
observed  for  the  stores  which  had 
larger  and  smaller  amounts  sold  per 
full-time  sales-person.  It  is  unneces- 
sary to  set  these  out  in  detail  inas- 
much as  they  are  contained  in  Table 
158. 

When  the  amounts  of  wages  and 
salaries  paid  to  salesmen  are  ex- 
pressed in  terms  of  $100  of  total  net 
sales  per  stock  turnover,  the  disad- 
vantages associated  with  the  large 
stores,  however,  are  reduced.  The 
amounts  are  smallest  in  stores  which 
are  largest,  although  for  those  with 
sales  less  than  $180,000  they  slightly 
increase  with  store  size.     It  is  worth- 


233 


TABLE  158 


AMOUNT  OF  WAGES  AND  SALARIES  PER  $100  OF  TOTAL  NET   SALES  PER  STOCK  TURN- 
OVER, FOR  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT  OF   SAIjES 
PER    FLT^L-TIME    SALES-PERSON,    1919 


AxruBt  of 
S*l<a  por 

f\jll-tlM 
S«lt»-ptr4cti 

(JO  COO'.) 

■tabor 

of 
StoroB 

W.««e 

and  Salarloa  pM-  tlOO  of  Total  Not 

Saleg 

Ikagea  and  Salarloa  per  tlOO  of  Total  Not 
por  Stock  Turnover 

Sales 

ciuiiri*< 

TCI.1 
■at  tel» 

(Is  ooo'tl 

Aiwunt 

rar  Cant.                               J 

Awo\mt 

Far  Cent. 

Oraphle                             1 

0     20      40      60     PO   ICO   120   140   160 

Actu&l 

Oraphlo                           1 
0     20     40      60     60   100   120    140   160 

Actual 

Tet*l 

2e« 

te.ee 

100. 0 

tS.C4 

100.0 

rbdor  tl2 
ti2  to  tie 
tie  to  t2« 

$24  to  tiZ 
tSZ  k  over 

so 
ss 

103 
44 
S6 

5.96 
7.24 
7.57 
S.69 
S.29 

B9.2 
108.4 
US. 3 
88.2 
79.2 

3.51 
3.15 
3.79 
2.46 
1.69 

115.5 
115.5 
124.7 
80.9 
62.2 

Itetol 

"■""          '^^^" 

_|M 

■■■■■" 

Total 
(Aver:ige) 

31 

4.19 

62.7 

2.79 

: 

91.8 

t'luler  tlZ 
$12  to  tie 
tie  to  $24 

t24   to   tJZ 

tS2  »  ovor 

« 

4 
1 
7 
* 

5.49 
4.M 
4.42 
3.24 
2.90 

82.2 
64.1 
66.2 
48.5 
43.4 

3.92 
2.38 
3.40 
1.91 
1.61 

^^^^^^^ 

128.9 
76.3 

ui.e 

62.8 

59.S 

Undar  $<0 

i 

Total 
(ATora^e) 

103 

5.40 

80.8 

3.00 

98.7 

Oaitr  $12 
$12  to  tie 
tie  to  $24 
$24  to  $12 
»J2  k  ovor 

16 
34 

51 

15 

6.f.5 
6.^9 
4.69 
5.49 
J. 00 

99.6 
94. 2 
70.2 
82.2 
44.9 

4. 43 

3.70 

2.61 
2.61 
1.58 

145.7 
121.7 
85.9 
85.9 
52.0 

t4C  to  $60 

— 

i 

Total 
(Avoraco) 

92 

6.72 

100.6 

3.54 

116.4 

Unlor  $12 
tl2  to  $16 
$16  to  t24 
t24  to  tSZ 
tJ2  k  o»er 

4 
IS 
SO 

u 

9 

6.14 
8.SS 
6.58 

5.74 
7.62 

91.9 
128.0 

es.s 

8S.9 
114.1 

3.25 
4.28 
S.64 

2.73 
2.72 

106.2 
140.8 
U6.4 
89.8 
89.5 

tSO  to  $1BC 

"^^"^ 

. 

: 

; 

I 

; 

I 

Total 
(Average) 

43 

7. 26 

109.0 

2.70 

88.8 

— 

tlfiO  k  oTor 

Ondor  tl2 
tl2  to  $16 

tie  to  t::4 

t24   to   }52 
$32  k  OTO- 

1 
i 
IS 
14 

10 

4.57 
7.JS 

9.!i6 
C.IO 
5.08 

68.4 
110.0 
147.6 

91.3 

76.0 

1.83 
2.53 

3.79 
2.35 
1.59 

60.2 
83.2 
124.7 
77. S 
52.5 

— 

while  in  this  connection  to  indicate 
the  precise  amounts.  When  all  the 
stores  are  considered  as  a  unit,  it  cost 
$3.04  in  wages  and  salaries  per  $100 
of  total  net  sales  per  .stock  turnover. 
For  the  stores  with  sales  under  $40,- 
000,  the  amount  w&s  $2.79 ;  for  those 


with  sales  of  $40,000  to  $80,000, 
$3.00 ;  for  those  with  sales  of  $80,000 
to  $180,000,  $3.54;  and  for  those  with 
sales  of  $180,000  and  over,  $2.70. 
Using  for  illustration  the  group  of 
stores  in  which  the  sales  per  full-time 
sales-person  per  year  were  between 


234 


$12,000  and  $16,000,  it  cost  on  the 
average  for  all  stores,  $3.45.  For 
those  with  sales  under  $40,000,  it  cost 
$2.38 ;  for  those  with  sales  of  $40,000 
to  $80,000,  $3.70 ;  for  those  with  sales 
of  $80,000  to  $180,000,  $4.28 ;  and  for 
those  with  sales  of  $180,000  and  over, 
$2.53. 

The  relative  advantage  which  the 
large  stores  have  in  the  amounts  of 
wages  and  salaries  paid,  when  they 
are  measured  in  this  form  as  con- 
trasted to  sales  alone,  is,  of  course, 
attributable  to  the  relatively  greater 
rapidity  with  which  they  turn  their 
stock.  The  actual  rates  for  282  stores, 
classified  by  size,  are  shown  in  Table 
41.  It  is  unnecessary  to  give  the 
figures  in  this  case. 

The  details  of  Table  158  have  a 
practical  significance  to  merchants, 
which  it  is  worth-while  to  mention. 
When  the  amounts  of  sales  per  full- 
time  sales-person  increase,  the  cost  of 
operation  in  wages  and  salaries  per 
$100  of  total  net  sales  decreases.  This 
is  true  for  the  stores  treated  as  a 
whole  and  when  classified  by  size. 
For  the  group  of  103  stores  with  sales 
of  $40,000  to  $80,000,  it  is  found  that 
the  amount  of  wages  and  salaries  per 
$100  of  total  net  sales  is  $6.65  for 
those  in  which  the  salesmen  sold  less 
than  $12,000,  while  it  is  $3.00  for  the 
stores  in  which  the  salesmen  sold 
$32,000  and  over.  Between  these 
limits  the  amounts  decrease  with  a 
single  exception  as  the  amounts  sold 
per  full-time  sales-person  increase. 
That  is,  in  practical  operation,  the 
cost  of  selling,  expressed  in  sales,  may 
be  decreased  more  than  50  per  cent. 


through  increasing  the  amounts  sold 
per  full-time  sales-person. 

Still  greater  savings  in  expenses, 
so  far  as  wages  and  salaries  are  con- 
cerned, may  be  secured  by  increasing 
the  rate  at  which  stock  is  turned.  The 
same  group  of  stores — those  with 
sales  of  $40,000  to  $80,000— may  be 
used  to  illustrate  this  point.  For  the 
16  stores  in  which  salesmen  sold  less 
than  $12,000  for  the  year,  it  cost  in 
wages  and  salaries  per  $100  of  total 
net  sales  per  turnover,  $4.43.  For 
those  in  which  the  salesmen  sold  be- 
tween $12,000  and  $16,000,  the  corre- 
sponding cost  was  $3.70.  For  those 
in  which  the  salesmen  sold  $32,000 
and  over,  it  cost  but  $1.58.  The 
regularity  with  which  the  amounts, 
measured  in  this  form,  decrease  for 
the  different  groups  of  stores  is  not 
uniform.  Over  the  entire  range,  how- 
ever, the  direction  of  change  is  un- 
mistakable and  points  at  once  to  the 
conclusion  that  the  greater  the  sales 
per  full-time  sales-person  the  smaller 
is  the  expense  of  wages  and  salaries 
for  each  $100  of  total  net  sales  per 
turnover. 

The  amounts  of  wages  and  salaries 
for  these  269  stores  in  1919  may  also 
be  expressed  in  terms  of  sales  for 
each  $1,000  sold  per  full-time  sales- 
person. This  is  done  in  the  part  of 
Table  159  carrying  this  caption.  For 
all  stores  the  average  amount  is  $0.33. 
For  those  with  sales  under  $40,000, 
it  is  $0.25;  for  those  with  sales  of 
$40,000  to  $80,000,  it  is  $0.32;  for 
those  with  sales  of  $80,000  to  $180,- 
000,  $0.35 ;  and  for  those  with  sales  of 
$180,000    and   over,    $0.31.     Within 


235 


each  of  the  groups  of  stores  when  they 
are  classified  by  size,  the  amounts 
rapidly  decrease  as  the  sales  per  full- 
time  sales-person  increase.  By  using 
again  the  103  stores  with  sales  of 
$40,000  to  $80,000  and  the  unit  de- 


scribed above,  it  is  found  that  it  cost 
the  stores  in  which  salesmen  sold  less 
than  .*12,000,  $0.66,  while  for  those 
in  which  the  salesmen  sold  $32,000 
and  over,  it  cost  $0.07.  Between  these 
limits,  the  amounts  decrease  as  the 


TABLE  159 

AMOUNT   OF    WAGES   AND   SxVLARIES    PER    $100    OP    TOTAL   NET    SALES    PER   $1,000    OF 

SALES    PER    FULL-TIME     SALES-PERSON,     FOR    STORES     CLASSIFIED     BY     SIZE 

AND   BY  .AMOUNT    OF   SALES    PER   FULL-TIME    SALES-PERSON,    1919 


eiuiiriofl 

lot.l 

Aaount  of 
Sales  p«r 
Pull-tlM 
S«loB-p«rBoo 
(in  000'.) 

■uBbor 
of 

■agaa  and  Salarlaa  par  $100  of  Total  let 

Salea 

Uagaa  and  Salarlaa  par  $100  of  Total  Nat  Salas 
par  $1,000  of  Salas  par  Poll-tina  Salaa-paraon 

ABOunt 

Tar  Caot. 

AaouDt 

Par  Cent. 

(In  OOO'i) 

Graphic 
0     20     40     €0     80   100   120  140    160 

Actual 

Graphic 
0    .20      40      60      80    loo    120    140    160    180 

Actual 

Total 
(Avaraga) 

269 

$6.66 

I 

100.0 

10.53 

100.0 

Quiar  $12 
$12  to  $16 
$16  to  $24 
$24  to  $32 

$32  k  o»ap 

30 

se 

103 
44 
36 

5.96 
7.24 
7.57 

s.es 

5.29 

89.2 

ioe.4 

113.3 
88.2 
79.2 

O.SS 
0.51 
0.40 
0.21 
0.13 

175.8 
154.5 
121.2 
63.6 
39.4 

Uxng*) 

"■^^^■^; 

I 

— 

Total 
(ATorage) 

31 

4.19 

62.7 

o.as 

75.9 

Onflar  $12 
$12  to  $16 
$16   to  $24 
$24   to$S2 
$32  &  OTar 

9 
4 
7 
7 
4 

5.49 
4.28 
4.42 
3.24 
2.90 

82.2 
64.1 
66.2 
43.5 
43.4 

0.55 
0.29 
0.22 
0.11 

0.08 

166.7 
87.9 
66.7 
33  .S 
24.2 

tbdar  $40 

Total 
(ATCracc) 

103 

5.10 

80.8 

0.32 

97.0 

Qldor  $12 
$12   to  $16 
$16  to   $24 
$24   to  $32 
$32  k  OTar 

16 

34 

•31 

» 

13 

6.65 
6.29 
4.69 
5. 49 
3.00 

99.6 
94.2 
70.2 
82.2 
44.9 

0.65 
0.44 
0.05 
0.20 
0.07 

200.0'' 
133.3 
75.8 

eo.6 

21.2 

$40  to  iao 

— 

- 

Total 
(A.araea) 

92 

6.72 

100.6 

0.35 

106.1 

Ooacr   }12 
$12   to   tl6 
$16  to  $24 
$24   to  JJ2 
$32ko.«- 

4 
15 
SO 
14 

a 

6.14 

a. 55 
6.ja 

S.74 
7.62 

91.9 
128.0 
95.5 
05.9 
114.1 

0.59 
0.63 
0.34 
0.31 
0.30 

17S.S 
190.S' 
103.0 

93.9 
60.9 

$ea  to  $100 

^■^ 

Total 

43 

7.28 

109.0 

0.31 

93.9 

Unlar  $12 
$12  to  $16 
$16  to   J24 
$24   to   $32 
$32  k  oT»r 

1 

3 
IS 
14 
10 

4.57 

7. 55 
9.06 
6.10 

s.oe 

' 

68.4 
110.0 
147.6 
91.3 
76.0 

0.44 
0.51 
0.52 
0.Q2 
0.12 

: 

13S.3 
154. S 
157.6 
66.T 
36.4 

$iao  k  oior 

^^ 

Avaractt  d8 

60 

Avora^  $0.33 

i>ull  lonctn  not  atom 


236 


aDiounts  sold  per  salesman  increase. 
The  nature  of  these  decreases  as  well 
as  the  actual  amounts  may  be  ob- 
served by  consulting  Table  159. 

Table  160  shows  the  association 
between  the  amounts  of  wages  and 
salaries  paid  per  $100  of  total  net 
sales  and  the  average  sales  per  full- 
time  sales-person.  The  total  section 
supplements  the  detail  for  146  stores 
in  1919,  as  shown  in  Table  155.    The 


remaining  parts  show  the  average 
amounts  sold  in  stores  of  different 
size,  having  different  wage  and  salary 
expense  in  relation  to  sales.  Suffi- 
cient attention  has  already  been  given 
to  the  amounts  for  the  stores  treated 
as  a  whole.  The  condition  for  a  single 
group  may  be  illustrated  by  choosing 
again  the  group  of  103  stores  with 
sales  of  $40,000  to  $80,000.  When 
the  amount  of  wages  and  salaries  per 


TABLE  160 

TOTAL  NET  SALES,  NUMBER  OF  FULL-TIME  SALES-PEOPLE,  AND  AMOUNT  OF  SALES  FEB 

FULL-TIME  SALES-PERSON,  FOR  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT 

OF    WAGES    AND    SALARIES   PER   $100    OF   TOTAL    NET    SALES,    1919 


Amount  of 

Wage a  h 

Salaries 

per  $100  of 

Total 

Het  Salea 

Hiimber 

of 
8toreo 

Total 
Met  Salea 

HuBber  of 
PuXl-tljne 
Salea-paople 

Sales  per  Pull-tine  Sales-person 

ClesBlfled 

Total 

Amount 

Per  Cent. 

(In  OOO'o) 

Oraphlc                                             Actual 
)     20     40      eo      80   100   120    140    160   160   ZOO 

Total 
(Average) 

269 

$33,687,842 

1,666.5 

t20,215 

100.0 

Onder  t4 
»4  to  *8 

to  i  over 

77 
137 
55 

5,674,150 
19,511,844 
8,501,848 

266.5 
943.7 

4S6.3 

21,291 

20,676 
13,632 

105.3 
102.3 
92.2 

(Ayerago ) 

Total 
(Average ) 

31 

963,213 

56.8 

16,958 

83.9 

Dndar  $4 

#4  to  ta 

|8  8t  ovor 

15 
14 

2 

467,511 

436,247 

59,459 

23.6 

27.3 

5.9 

19,810 
15,980 
10,077 

98.0 
79.1 
49.8 

ttadsr  Uo 

■^— 

Total 
(Average ( 

103 

5,872,443 

353.3 

16,622 

82.2 

Under  |4 
♦4  to  ta 
$a  tc  over 

39 
49 
IS 

2,112,534 

2,875,452 

664,457 

104.8 
177.8 
70.7 

20,158 
16,172 
12,510 

99.7 
80.0 
61.9 

(40  to  |eo 

Total 
(Average ) 

92 

10,640,797 

564.2 

19,214 

95.0 

: 

1 

Under  (4 

»4  to  »e 

$8  k  over 

20 
45 
27 

2,125,457 
5,529,271 
3,186,069 

1U.5 
279.4 
173.3 

19,062 
19,790 
18,365 

94.3 
97.9 
90.9 

leo  to  ♦180 

: 

1 

Total 
(Average) 

43 

16,011,389 

692.2 

23, 131 

114.4 

'. 

Onder  |4 

(4  to  %a 

|8  fe  over 

3 
29 
U 

968,648 
10,670,874 
4,371,867 

26.6 
459.2 

206.4 

36,415 
23,238 
21,182 

180.1 
115.0 
104.8 

flSO  &  over 

ATerags  (20,215 


237 


$100  of  total  net  sales  is  less  than  $4, 
the  average  amount  sold  per  full-time 
sales-person  is  $20,158.  When  the 
amount  of  wages  and  salaries  per 
$100  of  total  net  sales  is  between  $4 
and  $8,  the  amount  of  sales  per  full- 
time  sales-person  is  $16,172;  and 
when  the  corresponding  amount  of 
wages  and  salaries  is  $8  and  over,  the 
amount  of  sales  is  $12,510.  Table  160 
supplements  Table  159,  and  should  be 
considered  in  connection  with  it. 

In  the  discussion  of  the  relation  of 
wages  and  salaries  to  sales,  Table  161 
is  of   interest.     For  the  269   stores 
which   are   studied,    $1,496   in   sales 
were  secured  in  1919  for  each  $100 
of  wages  and  salaries  paid.     As  the 
stores  increase  in  size  the  amounts  of 
sales  secured  for  each  $100  of  wages 
and  salaries  decrease.    For  those  with 
sales    under    $40,000,     the     average 
amount  is  $2,385  ;  for  those  with  sales 
of  $180,000  and  over,   it  is  $1,374. 
Within  each  group  of  stores,  however, 
when  classified  by  size,  the  amounts 
increase   as   the   sales   per   full-time 
sales-person    increase.      For    the    16 
stores  which  sold  between  $40,000  and 
$80,000,  and  in  which  the  amount  sold 
per    full-time    sales-person    was   less 
than  $12,000,  $1,505  were  secured  in 
sales   for    each   $100   of   wages   and 
salaries    paid.      For    the    13    stores 
having  the  same  amount  of  sales,  but 
in  which  each  salesman  sold  $32,000 
and  over,  $3,329  in  sales  were  secured 
for  each  $100  of  wages  and  salaries 
paid.      Similar   increases   follow   for 
the  stores  in   the  other  size-groups, 
although    in   some   the   amounts   are 
erratic  and  the  direction  of  change 


uncertain,  due  primarily  to  the  fe-w 
stores  which  are  included. 

The  foregoing  discussion  of  the 
amounts  of  wages  and  salaries  paid 
to  salesmen  per  $100  of  total  net  sales 
refers  to  1919.  Sales  were  high  in 
this  year,  due  not  only  to  the  amounts 
of  goods  sold,  but  also  to  prices 
realized.  In  view  of  this  fact,  it  has 
been  thought  worth-while  to  study, 
in  this  connection,  a  group  of  iden- 
tical stores  for  the  years  1914,  1918, 
and  1919.  Fewer  records  are  avail- 
able for  this  purpose,  but  those  which 
can  be  used  are  probably  sufficient 
to  serve  as  a  basis  for  generalization. 
They  are  certainly  helpful  in  measur- 
ing the  condition  in  1919  relative  to 
the  earlier  years. 

In  Tables  162  to  165,  inclusive,  146 
stores  classified  by  size  and  by  the 
amounts  of  goods  sold  per  full-time 
sales-person  in  1919,  1918,  and  1914 
are  studied  for  the  purpose  of  deter- 
mining the  amounts  of  wages  and 
salaries,  measured  in  different  ways, 
which  are  paid  to  salesmen.  The  dis- 
cussion of  the  269  stores  for  1919  had 
to  do  primarily  with  the  amounts 
paid  in  stores  of  different  size  and 
with  different  sales  per  full-time  sales- 
person. In  the  discussion  of  Tables 
162  to  165,  inclusive,  chief  interest 
lies  in  the  amounts  paid  in  the  differ- 
ent years.  These  are  fully  set  out  in 
the  tables,  the  units  of  analysis  being 
the  same  as  those  used  in  Table  159. 
For  the  146  stores  under  considera- 
tion, it  is  shown  in  Table  154  that  the 
amounts  of  wages  and  salaries  per 
$100  of  total  net  sales  and  per  $100 
of  sales  for  the  amount  sold  per  full- 


238 


TABLE  161 

WAGES   AND   SALARIES,    TOTAL    NET    SALES,    AND   AMOUNT    OF    TOTAL    NET    SALES   PER 

$100  OF  WAGES  AND  SALARIES,  FOR  STORES  CLASSIFIED  BY  SIZE  AND  BY 

AMOUNT   OF   SALES   PER  FULL-TIME   SALES-PERSON,    1919 


Cla3Blflefi 

Amount   of 
LaXes  per 
Pull-tlma 
balea-pargon 
(In  ooo'a) 

Niin'oor 

of 
Stores 

Total  nago3 
i  Salarica 

Totil 
Not  Sales 

Total  Wet  Sales  per  ClOO  of  Wages  and  Salaries 

Total 
Vat  Sales 

Aao'mt 

Par  Cent. 

Graphic                                                  Actual 
0     20      40     60     90   100   120    140   160   130   200   220  240 

Total 
CAvoracc) 

263 

$2,251,131 

$33,687,342 

$1,496 

Under  $12 
$12   to  $16 
$16  to  $24 
$24    to   $32 
$32  &  over 

30 
SS 
103 
44 
36 

Ul,7a4 
356,384 
1,040,507 
455,255 
297,261 

1,375,334 
4,323,136 
13,737,725 
7,722,827 
5,428,760 

1,678 
1,381 
1,320 
1,696 
1,390 

Total 

(Average) 

; 

Total 
(Avorage ) 

31 

40,382 

963,213 

2,385 

1S9.4 

Under  $12 
$12  to  $16 
lis  to  $2i 
$24  to   $32 
$32  /•  ovcr 

9 
4 

7 
7 

13,688 
5,472 

10,132 
6,838 
4,172 

243,200 

• 
127,962 

230,157 

212,103 

143,731 

1,321 
2,333 
2,260 
3,069 
3,445 

Dnder  $40 

^^r^^^ 

""""""" 

Totil 

103 

316, 375 

5,872,443 

1,953 

; 

UriJer  $12 
$12  to  $16 
$16  to  $24 
$24  to  $32 
$33  /:  over 

16 
34 

31 
9 
13 

S6,S13 
123,464 
84, 406 
32, 562 

20,025 

650,423 

1,961,395 

1,800,555 

693,340 

666,624 

1,505 
1,589 
2,133 
1,922 
3,329 

$<0  to  Jeo 

106.2 
142.6 

222.5 

Total 
(AvorQgo) 

92 

728,502 

10,840,797 

1,488 

9«.S 

Under  $12 
$12  to  $16 
$16  to  $24 
$24  to  $32 
$32  k  ovar 

4 
15 
60. 
14 

» 

24,023 
137,134 

382,801 
98,842 
85,697 

391,470 
1,604,273 
5,997,547 
1,722,331 

1,125,176 

1,629 
1,170 
1,567 
1,''43 
1,313 

loe.a 

78.2 
104.7 
116.5 

$B0   to  $1S0 

^^^^""^T 

. 

Totkl 
(Avarage ) 

43 

1,165,332 

16,011,389 

1,374' 

Undor  $12 
{12  to  $16 
$16  to  $24 
$24  to  $32 
$32  flc  over 

1 
S 
IS 
14 
10 

17,550 
90,314 
563,118 
316,983 
177,367 

384,295 
1,229,506 
5,709,366 
6,194,993 
3,493.229 

2,190 
1,361 
1.014 
1,639 
1,969 

$180  4  over 

91.0 
67.8 
109.6 

131.6 

^^^^^" 

Average  $lt496 


239 


TABLE  162 


AMOUNT  OF  WAGES  AND  SALARIES  PER  $100  OF  TOTAL  NET  SALES  PER  $1,000  OP  SALES 
PER  FULL-TIME  SALES-PERSON,   FOB  1-16   IDENTICAL   STORES   CLASSIFIED 
BY  SIZE  AND  BY  AMOUNT  OF  SALES  PER  FULL-TIME  SALES- 
PERSON, 1919,  1918,  AND  1914,  COMBINED 


itoount  of 
Salaa  por 

r\ill-tbaa 

Salo.-prr.oii 

(Id  00C%) 

Kiubor 
or 

Storo- 
jaara 

Wagaa  arid  Ealarlea  par  (100  of 
Total   Ket  Salea 

Wages  an!  Salaries   per  ilOO  of   Total  Het  Salea 
per  tl.OOO   or  Salea  per  Pull-tljae  Salei-person 

ciMiiriod 

Total 
■•t   Kalo 

Per  Cent. 

ASOUDt 

Per  Cent. 

<U  OOO'a) 

Aaovist 

Oraphle                            |^„^^ 
3      »      40      C-0      60    100    120   140 

0      20      40      60      80    100    120   140    160    180  200   220 

Total 
(A»araj«) 

4se 

(7.20 

100.0 

(O.-S 

; 

DUiar  (12 
(12  to  (16 
(16  to  (24 
(34    to    (32 
(32  k  orar 

JSl 
107 

lis 
ss 

7.86 
7.46 
7.60 
6.01 
4,7» 

10S.2 
103.6 
106.8 
63.: 
66.5 

0.84 
0.54 
0.4O 
0.22 
0.13 

total 
UTara<a) 

tso.o 
n.o 

4a.» 

».9 

9 

Total 
Unraco ) 

12S 

5.W 

83.1 

0.58 

: 

128.9 

OBdar  (12 
(12  to  (16 
(16   to   (24 
(24    to   (32 
(32  k  OTar 

71 
23 

n 

10 

4 

7.40 
4.81 
4.49 
3. SO 
2.37 

102.8 
66.8 
62.4 
48.6 
X.9 

0.9S 
O.SS 
0.2< 
0.13 
0.06 

2U.1 

Tf.d 
n.* 

U.3 

CbJor  (40 

Total 
Uiaraja) 

163 

6.4S 

89.6 

0.4a 

!■ 

106.7 

1 

UBdar  (12 
(12   to  (16 
(16  to  (24 
(24   to  tJ2 
(12  «.  over 

63 

48 
38 

7 
7 

7.BS 
e.61 
5.U 
3.23 
2.44 

108.0 
90.* 
71.0 
72.9 
33.9 

0.7» 
0.47 
0.28 
0.19 
0.06 

1TS.6 
4C^ 

u.s 

$40  to  (SO 

Total 
(*»«rac») 

108 

7.17 

99.6 

0.43 

95.6 

Uider  $12 
(12   to  (16 
H6'to   (24 
(24   to  (32 
(32  k  o>or 

14 

31 
46 
12 
5 

7.30 
7.58 
6.60 
6.M 
8.21 

04.2 
10S.3 
94.4 
96.4 
114.0 

0.74 
0.5S 
0.35 
0.26 
0.23 

164.4 

122.2 
80.0 
ST  .8 
Sl.l 

j 

■■^^■^"■■, 

! 

Total 
(Avaraga) 

42 

7.87 

109.3 

0.J9 

86.7 

; 

Undar  (12 
(12  to  (16 
(16  to   (24 
(24   to  (32 
(32  k  o»or 

S 
E 
17 
10 

7 

».C3 
9.38 
».21 
5.95 
4.43 

137.9 
130.3 
127.9 
82.6 
61.3 

0.95 
0.70 
0.47 
0.21 
0.12 

• 

211.1 
155.6 
104.4 

4e.7 

86.T 

(1£0  t.  OTcr 

Af  «T3BH^  tZSL. 


Averogft  $0»4ft 


time  sales-person  decreased  between 
1914  and  1918,  and  1918  and  1919. 
Tables  162  to  165,  inclusive,  show  that 
this  condition  held  for  each  group  of 
stores  when  classified  by  size.  More- 
over, decreases  from  year  to  year  also 
hold  for  each  group  of  stores  when 
the  amounts  are  measured  in  terms  of 


sales  for  each  $1,000  sold  per  full- 
time  sales-person.  The  direction  of 
the  change  from  year  to  year,  there- 
fore, seems  to  be  uniform. 

For  this  group  of  stores  in  each 
year,  as  for  the  269  in  1919,  the 
amounts  of  wages  and  salaries  in- 
crease as  the  stores  increase  in  size. 


240 


However,  for  each  group,  when  the 
stores  are  classified  by  size,  the 
amounts  of  wages  and  salaries  per 
$100  of  total  net  sales  and  per  $100 
of  total  net  sales  for  each  $1,000  sold 
per  full-time  sales-person  decrease  as 
the  amounts  sold  per  full-time  sales- 


person increase.  To  this  general  rule 
there  are  some  exceptions.  Had  the 
records  of  even  a  larger  number  of 
stores  been  analyzed,  some  exceptions 
would  have  been  expected.  For  this 
group,  they  are  so  few  that  they  do 
not  invalidate  the  conclusion  that  an 


TABLE  163 

AMOUNT  OP  WAGES  AND  SALARIES  PER  $100  OF  TOTAL  NET  SALES  PER  $1,000  OF  SALES 

PER  FULL-TIME   SALES-PERSON,  FOR   146  STORES   CLASSIFIED  BY   SIZE  AND 

BY    AMOUNT    OF    SALES    PER    FULL-TIME    SALES-PERSON,    1919 


Pull  length  not  sJic 


241 


TABLE  164 


AMOUNT  OF  WAGES  AND  SALARIES  PER  $100  OF  TOTAL  NET  SALES  PER  $1,000  OF  SALES 

PER  FULL-TIME   SALES-PERSON,   FOR   146   STORES  CLASSIFIED   BY  SIZE  AND 

BY    AMOUNT    OP    S.VLES    PER    FULL-TIME    SALES-PERSON,    1918 


toount  of 
Saloj  par 
ruii-tu» 
bloi-t>cr>oo 

(ID  OOO'll 

«a««a   uul  Salaries  per  $100  of  Total  Hat  Salaa 

Bai^o  end  Salarloo  par  $100  or   Total  Hot  Salea 
per  $l»0O0  of   Salos   per  Pull-tlna  ^^alee-peraon 

TBtil 

■olMr 

of 
Storaa 

ABDODt 

Per  Cent. 

Aacnmt 

Per  Cent. 

lis  >.X»'«) 

O"'^"                                1    Actual 
)      20      40      60     80    100    120  140   leO 

OrapMc                                             1     .    _     . 
1    Actual 

0      20      40      60      80      100    130    140    160    laO 

Tot.l 

14« 

$7.36 

100.0 

$0.47 

100.0 

Qbdor  $12 
$12  to  $18 
tl6   to    $24 
•24    to   $32 

60 
42 
ST 
14 
S 

7.27 
7.81 
7.39 
6.80 
3.49 

98.5 
10S.8 
lOO.l 
SZ.l 
47.3 

0.72 
0.58 
0.37 
0.25 
0.09 

1SS.2 
123.4 
18.7 
53.2 
19.1 

Utsi^^o) 

■■■" 

Total 
(*nr«g<) 

40 

6.84 

79.1 

0.49 

104.3 

OBlar  $12 
$12  to  $16 
$16  to  $24 
$24    to    $32 
$32  »  oT«r 

21 

t 
9 

S 

2 

7.55 
5.17 
4.60 
3.27 
1.30 

102.3 
70.1 
C2.3 
44.3 
17.6 

0.87 
0.38 
0.24 
0.12 
0.03 

185.1 
80.9 
51.1 
25. S 
6.4 

Vattr  $40 

■ 

To  tail 
(Avorago) 

61 

6.57 

B9.0 

0.50 

106.4 

Und.r   $12 
$12   to   $16 
$16   to    $24 
$24    to    $32 
$52  1.  o..r 

24 
CO 
16 
2 

7.44 
«.M 
5.64 
2.07 

100.6 
90.0 
76.4 
26.0 

0.70 
0.49 
0.31 
0.07 

148.9 
104.3 

$40  to  {80 

j 

14.9 

lotil 
(Avonga) 

32 

7.17 

97.2 

0.42 

89.4 

: 

Cador  $12 
$12  to  $16 
$16    to    $24 
$24   to    $38 
$32  4  o,.r 

i 

U 
10 

s 

1 

6.41 

6.43 
7.55 
S.05 
4.51 

86. 9 
87.1 
103.3 
122.6 
61.1 

0.57 
0.46 
0.38 
0.34 
0.12 

121.3 

97.9 

eo.9 

72.S 

ss.s 

$fo  to  tiao 

— 

Total 
(A»«r«sa) 

u 

8.37 

113.4 

100.0 

i 

$ieo  <•  ever 

miliar  $12 
$12  to  $1« 
$16  to   $24 
$24    to   $S2 

$32  »    o.«r 

4 
7 
3 

10. SO 
7.66 
6.08 

142.3 
106.5 
82.4 

176.6 
83.0 
46,9 

0.83 

0.22 

— 

; 

effective  method  of  reducing  the 
amounts  of  wages  and  salaries  per 
$100  of  total  net  sales  is  to  increase 
the  amount  sold  per  full-time  sales- 
person. 

The  amounts  of  wages  and  salaries 
paid  to  salesmen  may  also  be  ex- 
pressed in  terms  of  total  selling  ex- 
pense.     This    is    done    in    detail    in 


Table  166  for  the  269  stores  classified 
by  size  and  by  the  amounts  sold  per 
full-time  sales-person.  For  146  stores, 
in  1919,  as  shown  in  Table  157,  it 
cost  in  wages  and  salaries  $67.05  out 
of  every  $100  of  selling  expense.  For 
269  stores,  as  shown  in  Table  166,  the 
corresponding  cost  for  the  same  year 
was  $65.67.    Inasmuch  as  wages  and 


242 


salaries  become  a  proportionately 
smaller  percentage  of  selling  expense 
as  the  stores  increase  in  size,  the 
actual  amounts  for  two  groups  of 
stores  depend  on  the  proportions  in 


which  stores  of  different  size  are  in- 
cluded. The  amounts  in  1919  for  269 
stores  of  different  size  are  shown  in 
Table  166.  Briefly,  they  are  as  fol- 
lows :  For  the  stores  with  sales  under 


TABLE  165 

AMOUNT  OF  WAGES  AND  SALARIES  PER  $100  OP  TOTAL  NET  SALES  PER  $1,000  OF  SALES 

PER  FULL-TIME  SALES-PERSON,  FOR  146  STORES  CLASSIFIED  BY  SIZE  AND 

BY  AMOUNT  OF  SALES  PER  FULL-TIME  SALES-PERSON,  1914 


Claaairisd 

AfflOimt  of 
Salaa   par 
Pull-tixa 
Salaa-paraon 
(la  OOO'a) 

of 
Storoa 

Jli.:o3   and  Salarlaa 

par  JlOO   of  Total  Ba 

.„.. 

"..agaa   and  Salar 
par  $1,000  or  3 

lea  par  $100  of   Total  Ket  Salca 
alas  par  Pull-tlmo  Salaa-peraon 

Xst  Sale! 

Amount 

Par  Cant. 

Amount 

Per  Cant. 

3     20     40 

GrapMo 

60      80    100   120   140 

Actual 

0     20     40 

OT'^hlo                                 1  Actual 
60     30   100  120  140  160 

Total 
(ATar»g») 

146 

$7.43 

100.0 

$0.55 

100.0 

Bndar  $12 
$12  to  $18 
$16  to  $24 
$24  to   $33 
$S2  It  ovar 

ae 

35 
20 

4 
1 

8.51 
6.72 
5.57 
8.17 
1.78 

U4.2 
90.2 
74.8 

100.7 
23.6 

0.95 
0.48 
0.30 
0.30 

0.05 

143.9 
72.7 

TotU. 

1 

! 

(AvsrKg*) 

■ 

45.5 

7.6 

Total 

71 

8.41 

85.0 

0.71 

107.6 

nndsr  $12 
$12  to  $15 
$16  to  $24 
$24  to   $32 
$32  i  ovar 

45 
15 
3 
3 

7.5» 
4.53 
4.42 
3.69 

101.9 
60.8 

sa.3 

49.5 

1. 00 
0.33 
0.24 
0.14 

160.6 
SO.O 
36.4 
21.2 

Ondar  $40 

Total 
(A»araga ) 

46 

7.53 

100.9 

0.67 

101.5 

•DBdar  $12 
$12  to  $16 
$16  to  $24 
$24  to  $32 
$32  i  ovor 

31 
10 
5 

1 
1 

8.^5 

■<.94 

I'.GO 
1.7S 

110.5 
83.1 
65.0 

196.0' 
23.6 

0.85 
0.43 
0.28 
0.51 
0.05 

128.8 
72.7 
42.4 

77.3 
7.6 

t40  to  $90 

^^^B 

— 

■ 

Total 
(Avsrag? ) 

22 

7.45 

100.0 

0.53 

87.9 

Undar  $12 
$12  to  $16 
$16  to   $24 
#24  to  $32 
$52  &  over 

7 
6 

9.08 
7.41 
C.56 

121.9 
99.5 
74.5 

0.94 
0.54 
0.39 

142.4 
81.8 

$eo  to  $180 

1 

• 

; 

- 

Total 
(Averaja) 

5 

8.45 

113.6 

0.65 

100.0 

Uadar  $12 
$12  to  $15 
$16  to  $24 
$24  to   $32 
$32  £;  ovar 

S 

1 
1 

9.93 
7.29 
7.53 

133.3 
97.9 
101.1 

0.95 
0.49 
0.43 

143.9 
74.2 
63.6 

$180  k  over 

; 

Averaga  $7.45 

•Pull  lengfr.  no 

t  sho»-m 

Average  $0.56 

243 


$40,000,  the  average  amount  is 
$71.29;  for  those  with  sales  of  $40,- 
000  to  $80,000,  it  is  $71.93;  for  those 
with  sales  of  $80,000  to  $180,000,  it  is 
$66.95;  and  for  those  with  sales  of 
$180,000  and  over,  $63.07.  That  is, 
the  amounts  over  the  entire  range  of 
sizes  decrease,  altliough  the  average 
for  the  stores  with  sales  of  $40,000  to 
$80,000  is  slightly  larger  than  that  for 
the  stores  with  sales  under  $40,000. 
]\Ioreover,  the  amounts  for  stores 
having  a  given  amount  sold  per  full- 
time  sales-person  tend  to  decrease  as 
the  stores  increase  in  size,  although 
from  group  to  group  the  tendency  is 
somewhat  irregular. 

When  the  stores  are  classified  by 
size  and  further  by  the  sales  per  full- 
time  sales-person,  the  proportions 
which  wages  and  salaries  constitute 
of  each  $100  of  selling  expense  de- 
crease as  the  amounts  sold  per  full- 
time  sales-person  increase.  This  con- 
dition characterizes  the  269  stores  in 
1919,  shown  in  Table  166,  as  it  did 
the  smaller  number  for  the  same  year 
shown  in  Table  157. 

The  amounts  of  wages  and  salaries 
may  also  be  expressed  per  $100  of 
selling  expense  per  stock  turnover. 
This  is  done  in  the  columns  of  Table 
166  having  this  caption.  For  the  en- 
tire group  of  stores,  irrespective  of 
size,  the  average  amount  in  1919  was 
$29.80.  For  the  stores  with  sales 
under  $40,000,  it  was  $47.53;  for 
those  with  sales  of  $40,000  to  $80,000 
it  was  $39.96 ;  for  those  with  sales  of 
$80,000  to  $180,000  it  was  $35.24; 
and  for  those  with  sales  of  $180,000 
and  over,  $23.36.   That  is,  the  amounts 


decrease  as  the  stores  increase  in  size, 
the  percentages  of  difference  being 
somewhat  larger  when  the  amounts 
are  expressed  in  this  form  than  when 
they  are  expressed  in  selling  expense 
alone.  Moreover,  the  amounts  of 
wages  and  salaries  per  $100  of  selling 
expense  per  turnover  decrease  as  the 
amounts  sold  per  full-time  sales- 
person increase.  This  condition  holds 
for  the  stores  treated  as  a  whole  and 
when  classified  by  size.  There  are  a 
few  exceptions  to  this  general  rule  but 
these  are  inadequate  to  alter  the  con- 
clusion. An  effective  way  of  reducing 
wages  and  salaries  measured  in  terms 
of  selling  expense  per  turnover  is  to 
increase  the  amounts  sold  per  full- 
time  sales-person.  The  latter,  of 
course,  may  result  from  increasing 
the  sales  of  a  given  force  or  from 
reducing  the  size  of  the  selling  force. 
Table  167  shows  the  amounts  of 
wages  and  salaries  per  $100  of  selling 
expense  for  each  $1,000  sold  per  full- 
time  sales-person.  The  stores  in- 
cluded are  the  same  as  those  in  Table 
166.  For  all  the  stores,  irrespective 
of  size  or  of  the  amounts  sold  per  full- 
time  sales-person,  the  average  amount 
of  wages  and  salaries  per  $100  of 
selling  expense  for  each  $1,000  sold 
per  full-time  sales-person  was  $3.24. 
When  the  stores  are  classified  in  the 
four  size-groups  customarily  used,  the 
amounts  on  the  whole  decrease  as  the 
stores  increase  in  size.  For  those 
with  sales  under  $40,000  the  amount 
was  $4.20,  for  those  with  sales  of 
$180,000  and  over,  $2.73.  Moreover, 
when  the  stores  are  classified  by  the 
amounts    sold    per    full-time    sales- 


244 


TABLE  166 

AMOUNT  OF  WAGES  AND  SALARIES  PER  $100  OF  SELLING  EXPENSE  PER  STOCK  TURN- 
OVER, FOR  STORES  CLASSIFIED  BY  SIZE  AND  BY   AMOUNT  OF  SALES 
PER    FULL-TIME    SALES-PERSON,    1919 


^ — '-^ '■ — 

tooant  of 
&«l«a  par 
KU-tlaa 
Balea-person 
(In  OOO'a) 

Imber 

of 
fitoree 

■agea  and  Salaries  par  tlOO  of 
Sailing  acpaasa 

■aeaa  and  Salarlea  par  »100  of  Salllnc  Sxpesaa. 
par  StooJc  tomovar 

eiualflod 

Total 
lot  Bales 
(in  000'«) 

iaomt 

Par  Cant. 

iaont 

tar  Cant. 

OraphU                     1  Astsal 
1     20     40     60     80  100  120 

Oraphlo                                  [letaal 
0     20     40     60     80  100  120  140  160  ISO  200 

total 
Unrage) 

269 

169.57 

locr.o 

t29.80 

ttadar  tlS 

ti2  ts  tie 

tie  to  t24 
t24  to  tS2 
tS2  k  orar 

SO 
66 

109 
'      44 

86 

61.29 
T4,5S 
69.55 
61.50 
55.56 

9y.5 

113.7 
106.1 
93.8 
81.7 

36.05 
39.49 
34.78 
2S.6S 
19.13 

Total 
(iTorago) 

^""**'"*"^" 

64.2 

Total 
(iTeraga ) 

SI 

71.89 

108.7 

47.63 

; 

ttadar  tl£ 
tl2  to  tie 
tie  to  t24 

t24  to  tae 

tS2  ii  oTor 

9 

4 
7 
7 
4 

75.61 
76.62 
68.85 
76.56 
54.69 

115.3 
116.7 

105.0 
U6.S 
8J.4 

54-.01 
42.51 
52.96 
45.05 
34.18 

ObOor  t40 

i 

• 

Total 
(iTOraga ) 

lOS 

71.8S 

109.7 

39.96 

ttadar  tl2 
tl2  to  tie 
tie  to  t24 
t24  to  tS2 
t3Z  k  OTor 

16 
S4 

SI 
9 
13 

73.52 
7S.04 
71.26 
76.43 
69.40 

112.1 
111.4 
108.7 
116.6 
90.« 

49.01 
42.96 
39.59 
36.40 

31.26 

t4a  to  teo 

144.^ 

1 

Total 
(Average) 

«2 

66.95 

102.1 

3S.24 

ttadar  tl2 
ti2  to  tie 
tie  to  t24 

t24  to  tS2 

tS2  k  over 

4 
IS 
SO 
14 

9 

se.si 

75.72 
67.30 
64.01 
60.67 

86.2 
115.5 
102.6 
97.6 
92.5 

29.74 
37.86 
37.39 
30.48 
21.67 

teo  to  lieo 

1 

: 

j 

total 
'Avarage) 

4S 

6S.07 

96.2 

23.56 

^— 

Ovtar  tia 
ti£  to  tie 
tie  to  t24 
124  to  t32 
tS2  k  over 

1 
S 
15 
14 

10 

SS.09 
74.75 
70.95 
59.33 
50.15 

59.6 

u*.o 

108.2 
90.5 
76.5 

15.64 

25.77 
27.28 
22.82 
15.67 

S2.5 

tlfiO  k  oTor 

1 

i 

1^^ 

! 

52.6 

ATeraga  #66*67 


ATQraga  |29.&0 


person,  the  wages  and  salaries  per 
$100  of  selling  expense  for  each  $1,000 
sold  per  full-time  sales-person  de- 
crease as  the  salesmen's  activities  in- 
crease. This  is  to  be  expected  in  view 
of  the  method  by  which  the  stores  are 


classified.  The  only  virtue  of  ex- 
pressing the  amounts  in  this  form  is 
to  place  them  on  a  uniform  or  $1,000 
basis.  By  doing  this,  the  different 
store-groups  become  directly  com- 
parable. 


245 


The  meaning  of  Table  167  may  be 
made  clearer  if  the  amounts  of  wages 
and  salaries  for  a  single  group  of 
stores  are  studied.  For  stores  having 
sales  of  $40,000  to  $80,000,  it  cost 
$7.31  in  wages  and  salaries  per  $100 


of  selling  expense  for  each  $1,000  sold 
per  person  when  a  salesman  sold  less 
than  $12,000  per  year.  It  cost  but 
$1.40  in  wages  and  salaries  similarly 
measured  when  salesmen  sold  $32,000 
and    over.      Prudence    and   business 


TABLE  167 

AMOUNT   OF   WAGES   AND   SALARIES   PER   $100   OF   SELLING  EXPENSE   PER   $1,000    OF 

SALES  PER  FULL-TIME  SALES-PERSON,  FOR  STORES  CLASSIFIED  BY  SIZE  AND 

BY    AMOUNT    OF    SALES    PER    FULL-TIME    SALES-PERSON,    1919 


«ao<mt  or 
S«lM  [>«r 

r<ai-tia> 

t^lai-parxm 
(in  000'.) 

Imbar 

of 
Etoraa 

>a«a«  and  Salarlaa  par  tUM  of 
Sailing  Kzpanaa 

Wagea  and  SalArlaa  par  tlOO  of  Salllag  Kxpanaa 
par  tl,000  or  Salea  par  Pull-tlna  Salaa-paraoo 

eiuiinat 

■•t  (•!•* 

do  ooo'a) 

iKunt 

far  Cane. 

taanmt 

far  Cant. 

Qraphlo                         1 
20     to     SO     80  100  120 

kotual 

5     20      40      60 

(k^phla                                  1  Aetaal 

80    100    120   140   laO   190  200 

(Av*r«g») 

set 

tes.ST 

100.0 

t3.e4 

100.0 

i 

Otadar  tl2 
tlS  to  tU 

tie  to  t2« 

t24  to  t32 
tS  k  onr 

SO 

*a 

lOS 
M 

sa 

ai.M 

74.S3 
M.3S 
01.90 

93.se 

•9.S 

113.7 

io«a 

»3.» 

ei-.T 

6.01 
B.28 
3.6S 
3.M 
1.30 

ias.6 
les.o 

lU.V 

eo.x 

40.1 

fct»l 

Unr«e«) 

: 

—  "■ 

5 
r 

Total 
U.OTMOl 

a 

71.29 

ioa.7 

4.20 

12sr.6 

Ikdor  tU 
tl2  to  tie 
tie  to  t2t 

t24   to  t» 

taa  k  oTor 

» 
« 

7 
7 
4 

78.61 
7e.S2 
68.93 
76.6S 
94.69 

us  .9 
116.7 
103  .0 

iis.a 

S3.4 

7.SS 
S.26 
3.47 
8.67 
1.56 

233.0* 
162.8 
107.x 

Qldw  t40 

^— 

4e.i 

Tot*l 
UT>r«e>) 

109 

71. »3 

109.7 

4.33 

133.6 

: 

Ondor  tU 

tie  to  tie 

tie  to  t24 
t24   to  t32 
tSI  k  onr 

16 
94 
91 
• 
13 

73.sa 

73.04 
71.26 
76.49 
S8.4« 

112.1 
1U.4 

ioa.7 
us.e 

90.6 

7.31 
S.06 
S.77 
S.83 
1'.40 

2=5.6* 
1^6.9 

ue.4 

67.3 
43.2 

t«o  to  leo 

;  ' 

! 

— - 

1 

total 
(AToroga) 

ra 

ee.es 

102.1 

3.48 

107.4 

i 

Cbdar  tU 
tu  to  tie 
tie  t*  t24 

t24  to  %iZ 

t32  k  o>ar 

4 
IS 

eo 

14 

S 

ee.si 

79.71 
67.30 
64.01 
60.67 

86.2 

US.S 

lee.e 

97.6 
92.8 

8.44 
8.60 
8.S4 
Z.3S 

1.87 

1S7.8 
177.8 
109.3 
TC.S 

«e.s 

ta«  to  tuo 

■■^^"^ 

i 

Total 

U»or•^a) 

Omar  tl2 

ti2  to  tie 
tie  to  |2« 

t«4    to  t32 
•32ko.ar 

43 

63.07 

3».09 
74.73 
70.93 
59.33 
SO. IS 

96.9 

«.73 

84.3 

— 

1 
3 
IS 
14 
U> 

69.6 
U4.0 

ioe.2 

90.5 

76.5 

3.74 
£.20 
3.71 
2.15 
1.19 

115.4 
160.8 
U4.S 
86.4 
S6.T 

•IM  k  oTor 

' 

— 

■                          — 

' 

kfW^  |«6«ft7 


ATar*e»  |3*34 


Full  longtb  not  ftbom 


246 


sense  immediately  suggest  the  desir- 
ability of  stimulating  sales  as  a 
method  of  reducing  the  percentage 
of  selling  expense  reflected  in  wages 
and  salaries. 


The  data  in  Table  167,  however, 
refer  alone  to  the  year  1919.  In  many 
particulars  this  is  an  exceptional  year, 
and  it  has  been  thought  of  interest  to 
include  data  similarly  classified  for 


TABLE  168 

AMOUNT  OF  WAGES  AND  SALARIES  PER  $100  OF  SELLING  EXPENSE  PER  $1,000  OF  SALES 

PER   FULL-TIME    SALES-PERSON,    FOR    146    IDENTICAL    STORES    CLASSIFIED   BY 

SIZE    AND    BY    AMOUNT    OF    SALES    PER    FULL-TIME    SALES-PERSON, 

1919,    1918,    AND   1914,    COMBINED 


Anoent  of 
8«lee  per 
Ml-tlie 
s*aeE-p«rB0D 
(in  000' •) 

Softer 

of 
Store. 
Teare 

Wages  and  Sslerleo  per  tlOO  of 
Selling  Expense 

nagee  and  Salaries  per  (100  of  Selling  Ejqwnee  per 
(1.000  of  Salee  per  FDll-tlne  Salee-person 

Total 
Xet  Sklea 
<ia  000"«) 

ABOimt 

Fer  Cent. 

AaoUEt 

Per  Cent. 

Qraphlo                   |    Actual 
}     20     40     60     80  100  120 

Qraphlc                                 1  Actual 
)      20      40      60     80   100   120   140   160   180   200 

totlO. 
(Average ) 

456 

(66.88 

100.0 

(4.14 

100.0 

OwlM-  (12 
(12  to  (16 
(16  to  (24 

(24  to  (S2 
(52  4  over 

Ul 
107 

ue 
s» 

25 

70.25 

68.04 
£8.55 
58.82 
57.  il 

lOS.O 
101.7 
102.5 
89.4 

85.8 

7.49 
4.96 
5.58 
2.1B 
1.55 

180.9 
119.8 
66.5 
52.7 
37.4 

UTorBge) 

■HHi 

i 

Total 
(Average) 

125 

69.85 

72.88 
69.70 
65.94 
56.SS 
47.12 

104.4 

6.72 

162.5 

ttoder  (12 
(12  to  (16 
(16  to  (24 
(24  to  (S2 

(Sa  k  orer 

71 
25 
17 
10 

4 

109.0 
104.2 
96.6 
84.5 
70.5 

9.58 
5.09 
5.56 
2.05 
1.27 

226.0" 
122.9 
81.2 
49.5 
50.7 

Older  (40 

^^^                             i 

Totil 
(Average) 

165 

70.15 

104.9 

5.24 

126.6 

Onder  (12 
(12  to  (16 
(16  to  (24 
(24  to  (S2 
(52  k  over 

65 
4S 

se 

7 
7 

72.53 
68.95 
67.07 
73.48 
60.63 

ioe.4 

105.1 
100.3 
109.9 
BO. 7 

7.25 
4.99 
5.66 
2.68 
1.45 

175.1 
120.5 
88.4 
64.7 
34.5 

— 

Total 
(Average ) 

loe 

66.96 

100.1 

4.05 

97.8 

DndM-  (12 
(12  to  (16 
(16  to  (24 
(24  to  (52 
(52  k  over 

14 
51 
46 
12 
S 

64.44 

68.16 
66.26 
67.49 
72.16 

96.4 

101.9 
99.1 
100.9 
107.9 

6.55 
4.91 
5.49 
2.55 
1.99 

153.4 

iie.6 

64.3 
61.1 
46.1 

(80  to  (IBO 

..i^ 

i 

Total 
(Average) 

4£ 

86.08 

97.5 

3.21 

77.5 

! 

man*  (12 
(12  to  (16 
(16  to  (:4 

5 
5 
17 
10 

7 

67.52 
66.84 
70.18 
E6.4Cr 
52.49 

100.7 

ee.9 

104.0 
64.3 
78.6 

€.43 
4.98 
3.59 
£.03 
1.44 

155.3 

120.3 
86.7 

(180  *  over 

^^^ 

«..  .   .  - 

34.8 

1 

Average  (66.8B 


Average  (4.14 


Pull  length  not  eboan 


247 


TABLE  169 

AMOUNT  OF  WAGES  AND  SALARIES  PER  $100  OF  SELLIN®  EXPENSE  PER  $1,000  OF  SALES 

PER  FULL-TIME  SALES-PERSON,   FOR   146  STORES  CLASSIFIED  BY  SIZE  AND 

BY    AMOUNT    OF    SALES    PER   FULL-TIME    SALES-PERSON,    1919 


Cluiiri*< 
tat*i 

(In  OOO'l) 


teo  to  tiso 


Pull-tlB* 

SAl«s-p«ria 
tin  nnn'al 


Qidor  (12 
|12  to  tl6 
tie  to  t24 
t2<  to  |32 
$S2  k  ovor 


DBd*r  (12 
(12  to  (IS 
(16  to  (2« 
(24  to  (S2 
(32  k  OTor 


Qnder  (12 
(12  to  (16 
(16  to  (24 
(24  to  (32 
(32  k  ovor 


Ondor  (12 
(12  to  (16 
(16  to  (24 
(24  to  (32 
(32  k  over 


Ondor  (12 
(12  to  (1« 

(16  to  (24 
(24  to  (32 
(32  k  OTOr 


Or.phlo  I  J^Jtu.l 

0     20     40     60     80  100  120 


63.33 
76.04 
72.34 
57.24 
67.16 


66.32 

73.33 
75.23 
63.55 
79.68 
47.13 


71.97 


75.15 
72.82 
71.31 
71.61 
60.49 


£8.20 
78.15 


63.64 
73.37 


75.19 

es.32 

52.49 


100.0 


94.5 

113.4 
107.9 
85.4 
85.2 


99.2 


109.7 
112.2 
94.8 

lie  .a 

70.3 


107.3 


112.1 
108.5 
106.4 
106.8 
90.2 


For  Cont. 
0     20     40     60     80  100  120  140  160  ISO  200. 


(3.23 


6.51 
5.43 
3.84 
2.08 
1.54 


103.3 


42.1 

U6.6 

loi.a 

94.9 
109.4 


Avorago  (67.05 


3.20 
2.99 
1.35 


4.41 


7.83 
S.14 
3. S3 
2.67 
1.40 


3.79 


2.82 
£.63 
3.67 
2.39 
2.02 


ATorago  (3.28 


100.0 


198. » 
16S.S 
U7.1 
63.4 
47.0 

123.7 

228.0* 
171.3 
97.8 
91.2 
41.2 


134.5 


258.7' 
156.7 
U6.8 
81.4 
42.7 

115,2 

S6.0 
171.6 
1U.9 
72.9 
61.6 


120.4 

60.7 
43.9 


Fall  length  not  ahovn 


146  stores  for  the  years  1919,  1918, 
and  1914,  individually  and  combined. 
This  is  done  in  Tables  168  to  171, 
inclusive. 

The  data  in  Table  168,  for  the  three 
years  combined,  show  the  same  ten- 


dencies found  in  Table  167 ;  i.  e.,  for 
the  proportions  of  selling  expense  at- 
tributable to  wages  and  salaries, 
measured  in  either  the  simple  or  the 
complex  unit,  to  decrease  as  sales  per 
full-time    sales-person    increase    and 


248 


also  as  the  size  of  the  stores  increases. 
These  relations  hold  in  a  general  way 
for  each  of  the  years.  When  the  de- 
tail for  the  separate  years  are  com- 
pared, for  stores  of  a  given  size  and 
with  a  given  amount  of  sales  per  full- 
time    sales-person,    the    amounts    of 


wages  and  salaries  per  $100  of  selling 
expense  for  a  $1,000  of  sales  per  full- 
time  sales-person  tend,  in  a  general 
way,  to  decrease  from  year  to  year. 

Tables  158  to  171,  inclusive,  and 
the  discussion  concerning  them,  may 
be  summarized  as  follows;  First,  for 


TABLE  170 

AMOUNT  OF  WAGES  AND  SALARIES  PER  $100  OF  SELLING  EXPENSE  PER  $1,000  OF  SALES 

PER  FULL-TIME  SALES-PERSON,   FOR   146   STORES  CLASSIFIED  BY   SIZE  AND 

BY    AMOUNT    OF    SALES    PER    FULL-TIME    SALES-PERSON,    1918 


Cleillflad 

Totia 
Mat  Slat 

taount  of 
Salsi  psr 
TuH-tlno 
Salss.perBon 
(In  OOO'l) 

Kusibar 

of 
Storaa 

Wagaa  aod  Salarlea  par  $100 
Balling  KcpanBa 

of 

ffagea  and  Salaries  per  $100  of  Sailing  Exponsa 
par  $1,000  of  Saloa  par  Full-time  Ealea-paraon 

Aaount 

Per  Cent. 

Ano\mt 

far  Cent. 

(In  ooo's) 

Oraphle                    1  Aetu&l 
0     20     40     60     SO  100  l»f 

ari^hlo 
0     20     40     60     80  100  120  140  160  130  200  220 

Aotual 

Total 
Unngt) 

146 

$87.47 

100.0 

$4.32 

Uadtr  (12 
«12  t«  tie 

tlS  to  (S4 
}Z4  to  %iZ 
$32  k  onr 

SO 
42 
37 
14 

3 

71.00 
69.SS 
6S.01 
67.24 
62.50 

10S.2 
102.8 
96.4 
99.7 
92.6 

6.99 
S.17 
3.27 
2.43 
1.67 

Total 
(Averago ) 

^Hi^^^HHl 

; 

7S.7 

'              ; 

36.9 

38.7 

Total 
(ATarage ) 

40 

70.83 

105.0 

5.96 

""^^ 

Oular  tl2 

$12  to  lie 

(16  to  (24 

$24  to  $32 
$S2  k  onr 

21 
T 
5 
S 

2 

76.27 
72.09 
61.09 
S0.53 
47.10 

113.0 
106.8 
90.S 
74.9 
69.8 

8.75 
5.35 
3.24 
1.79 
1.18 

Vaiar  (40 

— 

41.4 

27.S 

Total 
(AToraga ) 

61 

70.23 

104.1 

5.33 

ttular  $12 
$12  to  $16 
$16  to  $24 
$24  to  $32 
$32  1  oTar 

24 
20 
IS 

S 

71.03 
69.71 
69.99 
S9.61 

lOS'.S 
103.3 
10?.7 
88.4 

155.1 

t*o  to  iao 

i 

S.14 

2.10 

^^ 

i 

Total 
(ATarago) 

32 

65. 4S 

97.0 

I 

; 

Undar  $12 
$12  to  $16 
$ie  to  $24 
$24  to  $32 
$32  t  ovar 

S 
U 
10 

S 

1 

64.06 
62.92 
65.20 
70.88 
6S.40 

94.9 
93.3 
96.6 
105.1 
96.9 

132.2 

ios.a 

tso  to  tieo 

; 

5.71 

: 

3.25 
2.64 
1.80 

:                            { 

Total 
(Avaraga) 

13 

66.88 

99.1 

86.5 

(leo  &  ov«r 

DBdar  $12 
$12  to  $16 
$16  to  $24 
$24  to  $32 
$32  t  over 

4 
7 
8 

72.92 
64.26 
65.31 

108.1 
95.2 
96.8 

- 

132.9 

: 

3.18 
2.37 

—  \ 

Avorage  ^.52 


249 


stores  of  a  given  size,  the  amounts  of 
■wages  and  salaries,  measured  in  any 
of  the  units,  decrease  as  the  sales  per 
full-time  sales-person  increase.  Sec- 
ond, for  stores  with  a  given  amount 
of  sales  per  full-time  sales-person,  the 
amounts  of  wages  and  salaries  per 
$100  of  total  net  sales  and  per  $100 
of  total  net  sales  per  stock  turnover 
increase,  while  per  $100  of  total  net 
sales  per  $1,000  of  sales  per  full-time 
sales-person,  they  decrease  as  stores 
increase  in  size.  Third,  for  stores 
with  a  given  amount  of  sales  per  full- 
time  sales-person,  the  proportions  of 
selling  expense  chargeable  to  wages 
and  salaries,  measured  either  in  the 
simple  or  in  the  complex  units,  de- 
crease as  the  size  of  the  stores  in- 
creases. 

C. — Yearly  Amaiinis  of  Wages  and 
Salaries  per  $100  of  Total  Net 
Sales  and  per  $100  of  Selling  Ex- 
pense,  for  Stores  Classified  by 
Size  and  by  Size  of  City  in 
Which  Located*  1919. 

The  discussion  of  wages  and  sal- 
aries in  relation  to  sales  in  Volume 
lit  of  the  Bureau's  study  of  Costs, 
Merchandisimj  Practices,  Advertising 
and  Sales  in  the  Retail  Distribution 
of  Clothing  showed  that  the  entire 
wage  bill  in  terms  of  sales  was  rela- 
tively lower  for  stores  in  small  than 
for  those  in  large  cities.  In  the  fol- 
lowing section  the  effect  of  location 
on  wages  and  salaries  paid  to  sales- 
men is  studied  for  a  group  of  stores, 
having  in  1919  sales  between  $40,000 

•  Population  figures  are  for  1920. 
•|-  Pages  146  to  156,  inclusive. 


and  $80,000  and  located  in  different 
sized  cities.  This  part  of  the  discus- 
sion closely  follows  that  on  pages 
112  to  118. 

In  Table  172,  103  stores  with  an- 
nual sales  of  $40,000  to  $80,000  are 
classified  according  to  location  and 
the  amounts  sold  per  full-time  sales- 
person. The  average  amount  of 
wages  and  salaries  per  $100  of  total 
net  sales  for  the  89  stores  in  the  small 
cities  in  1919  was  $5.34;  for  the  14 
stores  located  in  the  large  cities  it  was 
$5.76.  That  is,  it  cost  on  the  average 
$0.42  more  to  sell  $100  worth  of  goods 
for  the  stores  in  the  large  than  for 
stores  of  similar  size  in  the  small 
cities.  This  advantage,  however,  does 
not  always  hold  for  the  stores  with 
different  location,  but  having  the  same 
amount  sold  per  full-time  sales-per- 
son. To  test  satisfactorily  this  latter 
condition  would  require  more  store 
records  for  stores  in  the  large  cities 
than  are  available.  Within  each  city- 
group,  however,  the  amounts  of 
wages  and  salaries  per  $100  of  total 
net  sales  decrease,  with  minor  excep- 
tions, as  the  amounts  sold  per  full- 
time  sales-person  increase,  the  con- 
tinuity of  the  decrease  being  un- 
broken for  the  stores  in  the  small 
cities  and  interrupted,  in  'spite  of  the 
few  stores  considered,  at  only  two 
places  for  the  stores  in  the  large 
cities. 

Table  172  also  supplies  the  data 
for  a  more  refined  analysis  of  the 
amounts  of  wages  and  salaries.  In 
the  right-hand  columns  of  the  table, 
the  amounts  per  $100  of  total  net 
sales  per  stock  turnover  are  shown 


250 


TABLE  171 


AMOUNT  OF  WAGES  AND  SALARIES  PER  $100  OF  SELLING  EXPENSE  PER  $1,000  OF  SALES 

PER  FULL-TIME  SALES-PERSON,   FOR   146   STORES   CLASSIFIED  BY   SIZE  AND 

BY    AMOUNT    OF    SALES    PER    FULL-TIME    SALES-PERSON,    1914 


Anount  of 
S&lee  per 
Pull-tU«» 
Salee-pereon 
(In  OOO't) 

Hunber 

of 
Stores 

Vagea  and  Ealarlee  per  (lOO  of 
Selling  Expense 

Wages  and  Salarloe 
per  (l.OCO  of  Sales 

per  $100  of  Selling  Expense 
per  Pull-tlBo  Salee-person 

total 
Ret  ealo* 

Awimt 

Per  Cent. 

Anount 

fer  Cent. 

(IB  OOO'l) 

Qr^fihie 
)     20     40     60     80  100  120 

Astnal 

>     20     40     60 

80  100  120  140  160  180 

Total 
(Average) 

146 

(65.59 

100.0 

(5.7B 

Dnder  (12 
(12  to  (16 
(16  to  (24 
(24  to  (S2 
(SS  »  over 

Be 

3S 

20 

4 
1 

70.77 
60.07 
66.80 
71'.  68 
61.62 

107.9 
91.6 
86.6 

109.5 
94.4 

7.69 
4.28 
5.05 
2.60 
1.65 

Total 
(Avera^) 



• 

; 

28.2 

Total 
(Average) 

71 

69.82 

106.4 

7.76 

154.5 

D&der  (12 
(12  to  (16 
(16  to  (24 
(24  to  (i2 
(S2  k  over 

45 
IS 
8 
9 

71.82 
6^.89 
66.88 
54.68 

108.6 
103.5 
102.0 

es.4 

».91 

4.91 
5.60 
2.05 

171.6 
64.9 
62. S 
35. 1 

Oidsr  (40 

— 

: 

Total 
(Average) 

48 

68.63 

104.6 

5.44 

94.1 

Dader  (12 
(12  to  (16 
(16  to  (24 
(24  to  (S2 
(32  k  over 

SI 

10 
E 

I 
1 

7S.09 
62.07 
48.73 

eo.8o. 

61.92 

111.4 
94.6 
74.5 

123.2 
94.4 

7.57 
4.52 

2.77 
2.83 
1.63 

151.0 
78.2 
47.9 
49.0 
28.2 

(40  to  (60 



Total 
(Average ) 

22 

64.05 

97.6 

4.96 

Onaor  (12 
(12  to  (16 
(16  to  (24 
(24  to  (32 

(33  &  over 

7 
9 
6 

69.73 
61.90 

68.03 

106.5 
94.4 

88.5 

7.19 
4.66 
5.02 

124.4 
78.7 
52.2 

(80  to  (180 

Total 
(Average) 

6 

60.77 

92'.7 

4.75 

81.8 

tkder  (12 
(12  to  (IE 
(16  to  (24 
(24  to  (32 
(se  k  ever 

S 
1 
1 

67.32 
64.67 
57.42 

102.6 
83.4 
87.5 

6.43 

3.64 
3.20 

111.2 
63.0 
55.4 

$130  *  OT»p 

— 

i 

t 

Average  (65. £9 


Avurugtt  (S»7S 


for  stores  with  annual  sales  from 
$40,000  to  $80,000  and  with  different 
amounts  sold  per  full-time  sales- 
person. When  the  amounts  are  ex- 
pressed on  a  per  turn  basis,  and  when 
the  stores  are  considered  as  a  group, 


those  in  the  large  cities  spend  less 
than  do  those  in  the  small  cities. 
When  they  are  classified  by  the 
amounts  sold  per  full-time  sales- 
person, however,  this  advantage  does 
not  hold  in  each  individual  instance, 


251 


TABLE  172 

AMOUNT  OP  WAGES  AND  SALARIES  PER  $100  OF  TOTAL  NET  SALES  PER  STOCK  TURN- 
OVER,   FOR   STORES   WHTH   SALES   OF   $40,000    TO   $80,000,    CLASSIFIED   BY    SIZE 
OF  CITY  AND  BY  AMOUNT  OP  SALES  PER  FULL-TIME  SALES-PERSON,  1919 


Aaount  of 
£«les  per 
PuU-tlJio 
SAlo>-perso: 


Wagaa  ajid  Ssl&rtoa  par  $iOO  of  Total  Hat  Salaa 


0      20      40      60     80   100   120   140   ICO 


Vagea  and  Salaries  par  $100  of  Total  Rat  Salea 
par  :>tock  Turnover 


20      40     60     80   100    120   140   160 

__ , ; 1 , ^. 


Total 
(Ageraiga) 


Dndar  $12 
tl2  to  tie 
}16  to  t24 
t24  to  $32 
$32  It  over 


6.65 
6.29 
4.69 

S.49 
3.00 


S.St 


Dtadar  $12 
$12  to  $16 
$16  to  $24 
$24  to  $32 
$32  A  over 


6.92 

6.31 
4.79 

4.oa 

2.9S 


5.7S 


Ondar  $12 
$12  to  $16 

$16  to  $24 
$24  to  $32 
$32  &  over 


4.57 
6.24 
3.63 
e.03 
S.M 


100.0 


53.00 


123.1 

116.5 
86.9 

101.7 
55.5 


4.43 

3.70 
2.61 
2.61 
1.58 


96.9 


3.14 


128.1 
116.9 
88. S 
75.6 
54.1 


4.61 
3.71 
2.81 
2.27 


106.7 


2.74 


84.6 
US. 6 

67.2 
1*8,7 

65.9 


2.86 
3.12 
I.IO 
3.21 
2.23 


4vara^  $5.40 


Avarago  $3.00 


100.0 


147.7 
123.3 

87.0 
87 .0 
52.7 


104,7 


153.7 
123.7 
93.7 
75. 7 
48.7 


91.3 


95.3 
104.0 

36.7 
107.0 

74.3 


the  number  of  stores  being  too  few 
to  reveal  characteristic  amounts. 
Within  each  city-group,  however,  the 
amounts  of  wages  and  salaries,  when 
measured  in  a  unit  of  sales  per  stock 
turnover,  decrease  as  the  amounts 
sold  per  full-time  sales-person  in- 
crease. Generally  speaking,  the 
greater  rapidity  of  turnover  for  the 
stores  in  the  large  cities  more  than 
compensates  for  the  disadvantage 
under  which  they  operate  so  far  as 
pajTnents  for  wages  and  salaries  in 
relation  to  sales  are  concerned. 

It  will  be  remembered  that  stores 
of  not  widely  different  size  are  in- 


volved in  this  comparison.  The  prac- 
tical significance  of  the  conclusions 
seems  to  be  that  merchants,  doing  a 
given  amount  of  business,  have  lower 
amounts  of  wages  and  salaries  in 
terms  of  sales  in  the  small  than  in  the 
large  cities,  but  that  they  have  higher 
expenses  of  the  same  type  when 
measured  in  terms  of  sales  per  turn- 
over. 

Table  173  is  similar  to  Table  172. 
The  same  stores  are  included  and  the 
method  of  grouping  them  is  identical. 
The  only  additional  feature  of  Table 
173  is  that  expenses  attributable  to 
wages  and  salaries  are  expressed  in 


252 


terms  of  sales  for  each  $1,000  sold  per 
full-time  sales-person.  When  the 
amounts  are  shown  in  this  form,  the 
stores  in  the  small  cities,  when  treated 
as  a  whole,  retain  their  advantage. 
When  those  having  the  same  amounts 
of  sales  per  full-time  sales-person,  but 
differently  located,  are  compared,  two 
of  the  groups  in  the  small  cities  have 
smaller  amounts  than  those  in  the 
large  cities,  and  three  have  larger 
amounts. 

The  effect  of  location  and  amounts 
of  goods  sold  per  full-time  sales-per- 
son on  wages  and  salaries  may  also 
be  measured  by  expressing  wages  and 
salaries  in  terms,  first,  of  selling  ex- 


pense ;  and,  second,  of  selling  expense 
per  stock  turnover.  This  is  done  in 
Table  174  by  using  the  same  stores  as 
those  studied  in  Tables  172  and  173. 
Out  of  every  $100  of  selling  expense, 
wages  and  salaries  constitute  $72.69 
for  the  stores  in  the  small  cities  and 
$68.09  for  the  stores  in  the  large 
cities.  Moreover,  with  the  exception 
of  one  case,  the  amounts  stand  in  this 
order  for  stores  with  different  loca- 
tions, but  with  equal  amounts  sold 
per  full-time  sales-person.  Within 
each  city-group  there  is  little  or  no 
tendency  for  the  amounts  to  increase 
or  decrease  as  the  amounts  sold  per 
full-time  sales-person  increase.  When, 


TABLE  173 

AMOUNT  OF  VT'AGES  AND  SALARIES  PER  $100  OP  TOTAL  NET  SALES  PER  $1,000  OF  SALES 

PER  FULL-TIME  SALES-PERSON,  FOR  STORES  WITH  SALES  OF  $40,000  TO 

$80,000,  CLASSIFIED  BY  SIZE  OF  CITY  AND  BY  AMOUNT  OF 

SALES  PER  FULL-TIME  SALES-PERSON,  1919 


31  •• 

Amount  of 
S>les  par 

Piai-tiHB 

Sftlea-peraon 
(In  OOO'a) 

irvonbor 

of 
Storaa 

nagaa  and  Salarloa  p«r  $100  of  Total  Ket  Salea 

Wa««a  and  Salarloa 
par  $1,000  or  Sale 

par  $100  of  total  Hat  BalM 
a  par  Pull-tljra  Salaa-pareoft 

of 

Clt, 

(In  OOO'a) 

Aaount 

far  Cant. 

laomt 

For  Cent. 

Orapblo 
20      40      60      80    100    120    140   160 

Aetuaa 

>    20    40    60    eo 

Oraphlc 
100    120   140    160    180  2O0   220 

Actual 

Total 
(i»er>eo) 

103 

$5.40 

100.0 

$0.32 

100.0 

VDia  $12 
$12  to  $16 
$16  to  $24 
$24   to   $S2 
$32  4  o«r 

16 
54 

31 
» 

e.es 

6.29 
4.69 

S.49 
3.0O 

123.1 
116.9 

86.9 
101.7 

55. 6 

0.6« 
0.44 
0.25 
0.20 
0.07 

206.3 
1S7.S 
78.1 
62.5 
21.9 

CATOr&go ) 

^^^^ 

Total 
(Averneo) 

89 

5.34 

98.9 

0.32 

100.0 

i 

Undsr  $12 
$12   to  $16 
$16  to   $S4 
$24    to    $S2 
$32  i  onr 

14 
29 

29 
6 
U 

6.92 
6.31 
4.7a 
4.08 
2.92 

128.1 
U6.9 
88.5 
75.6 
54.x 

0.68 
0.44 
0.26 
0.15 
0.07 

212.5 

137.5 
81.3 
46.9 
21.9 

Onoor 

^" 

40 

'^"^^^^T" 

^- 

—     i 

Total 
(Averaga ) 

14 

S.76 

10S.7 

0.33 

103.1 

Under  $12 
$12  to  $16 
$16   to    $24 
$24   to   $32 
$32  k  over 

2 
6 
2 
S 
2 

4. 57 
6.24 
3.63 
8.02 
S.56 

e«.6 

115.6 
67.2 

148.7 
65.9 

0.48 
0.42 
0.17 

.      0.50 

o.oe 

150.0 
131.3 
53.1 
93.8 
25.0 

— 

■  1 

— 

253 


TABLE  174 


AMOUNT  OF  WAGES  AND  SALARIES  PER  $100  OF  SELLING  EXPENSE  PER  STOCK  TURN- 
OVER, FOR  STORES  WITH  SALES  FROM  $40,000  TO  $80,000,  CLASSIFIED  BY  SIZE 
OF  CTTY  AND  BY  AMOUNT  OF  SALES  PER  FULL-TIME  SALES-PERSON,  1919 


Averes"  ^^SS 


Average  tSS.DS 


however,  the  amounts  of  wages  and 
salaries  per  $100  of  selling  expense 
are  shown  per  stock  turnover,  rather 
different  conditions  follow.  The  aver- 
age amount  expressed  in  this  form  for 
the  stores  in  the  small  cities  is  $42,76. 
For  those  in  the  large  cities  it  is 
$32.42.  Moreover,  in  each  group  of 
stores,  classified  by  the  amounts  of 
sales  per  full-time  sales-person,  the 
amounts  are  larger  with  one  excep- 
tion for  the  stores  in  the  small  than 
for  those  in  the  large  cities.  In  addi- 
tion,   the    differences    between    the 


amounts  in  the  large  cities  and  those 
in  the  small  cities  are  more  marked 
when  amounts  of  wages  and  salaries 
are  expressed  in  terms  of  selling  ex- 
pense per  stock  turnover,  than  when 
shown  in  terms  of  selling  expense 
alone. 

Within  each  city-group,  the 
amounts  of  wages  and  salaries  per 
$100  of  selling  expense  per  stock  turn- 
over decrease  as  the  amounts  per  full- 
time  sales-person  increase.  For  the 
stores  in  the  small  cities  there  is  no 
exception  to  this  rule  and  for  those 


254 


in  the  large  cities,  even  with  the  few 
stores  considered,  only  two  exceptions. 
The  possibilities  of  reducing  wages 
and  salaries  as  a  part  of  selling  ex- 
pense for  each  stock  turnover  by 
stimulating  sales  may  be  shown  con- 
cretely if  the  group  of  89  stores 
located  in  small  cities  is  used  for 
illustrative  purposes.  For  the  stores 
in  which  salesmen  sold  less  than  $12,- 
000,  the  amount  of  wages  and  salaries 
per  $100  of  selling  expense  for  each 
stock  turnover  was  $49.04,  while  for 
the  stores  in  which  salesmen  sold  $32,- 
000     and     over     the     corresponding 


amount  was  $29.92.  Between  these 
limits,  as  amounts  sold  per  full-time 
sales-person  increase,  a  saving  is 
shown  for  each  group  of  stores.  Sim- 
ilar, but  less  certain  advantages 
through  stimulating  sales  may  also 
be  observed  by  considering  the  stores 
in  the  large  cities. 

Still  another  method  of  stating  the 
amounts  of  wages  and  salaries  for 
stores  classified  by  location  and  by 
amounts  sold  per  full-time  sales-per- 
son may  be  used  to  advantage.  In 
Table  175  the  amounts  of  wages  and 
salaries  per  $100  of  selling  expense 


TABLE  175 

AMOUNT  OF  WAGES  AND  SALARIES  PER  $100  OF  SELLING  EXPENSE  PER  $1,000  OF  SALES 

PER  PULL-TIME  SALES-PERSON,  FOR  STORES  WITH  SALES  FROM  $40,000 

TO  $80,000,  CLASSIFIED  BY  SIZE  OF  CITY  AND  AMOUNT  OF 

SALES  PER  FULL-TIME  SALES-PERSON,  1919 


Imount  of 
Sales  per 

P\iU-tlJM 

Salae-poraon 
(la  OOO's) 

Nnmbar 
of 

Stoma 

Wa^a  and  Salarlaa  per  $100  of 
Selling  Sxpenae 

Itagea  and  Salaries  per  $100  of  Salllog  Szpsnss  per 
$1,000  of  Sales  par  Pull-tljiia  Saloa-parsoa 

of 

city 

(In  OOOS) 

/taKmat' 

Per  Cent. 

Amoant 

tar  Cent. 

Orapmo                    1    Actual 
>     20     40     60     eo  100  12o' 

O"'*^"                                   1  Actual 
0     20     40     60     80  100  120  140   160  ISO 

Total 
(ATsraga ) 

103 

$71.03 

100.0 

$4.33 

TIndar  |12 
$12  to  #16 
tlS  to  t34 
$24  to  $32 
$32  k  om 

IS 
34 
31 

9 
IS 

73.52 
73.04 
71.26 
76.43 
59,40 

102.2 
101.5 

99.1 
106.5 

82.6 

7.31 
6.03 
S.77 
2.83 
1.40 

Total 
UTorag*) 

1 

; 

— 

Total 
(iTarags) 

ea 

72.89 

101.1 

4.42 

T)a6m  $12 
$12  to  $16 
$19  to  $24 

$24  to  $as 

$32  h  0T«r 

14 

29 
29 
« 
U 

73.56 
74.54 
73.37 
72.59 
59.83 

102.3 
103.4 
102.0 
100.9 
83.2 

7.26 
5,15 
3.92 
2.66 
1.42 

: 

: 

— 

Total 
(Averaga ) 

14 

68.09 

94.7 

3.86 

Under  $12 
$12  to  $1S 
$16  to  $24 
$24  to  $32 

$32  &  over 

S 

s 

2 
S 

73.03 

66.es 

49.97 
80.33 
97.27 

101.5 
93.0 
69.5 

ur.7 

70.6 

7.69 
4.55 
2.38 
3.03 
1.36 

iO  and 

1 

55.0 

2B.1 

Averag9  $71.93 


ATora^  $4.33 


255 


for  each  $1,000  sold  per  full-time 
sales-person  are  shown  for  the  stores 
classified  as  in  Table  173.  The  bases 
of  classification  are  location  and 
amount  sold  per  full-time  sales-per- 
son. The  amounts  of  wages  and 
salaries  in  terras  of  selling  expense 
for  the  stores  thus  classified  are  made 
fully  comparable  from  group  to 
group  when  they  are  put  on  a  $1,000 
basis.  The  actual  amounts  with  the 
graphic  representation  are  shown  in 
the  right  hand  columns  of  Table  175. 
Stated  in  this  form,  the  amounts  of 
wages  and  salaries  for  stores  in  the 
small  cities  are  relatively  high  and  for 
those  in  the  large  cities  relatively  low. 
That  is,  the  amounts  stand  in  the 
same  relative  position  as  do  those  in 
which  the  unit  is  selling  expense 
alone.  Within  each  city-group  they 
decrease  rapidly  as  the  sales  per  full- 
time  sales-person  increase,  the  abso- 
lute and  percentage  reductions  in  the 
small  and  large  stores  being,  respec- 
tively, $5.84  or  80.4  per  cent.,  and 
$6.43  or  83.6  per  cent. 

D. — Summary. 

(1),  From  year  to  year,  the 
amounts  of  wages  and  sal- 
aries, in  terms  of  sales  alone 
and  of  sales  per  $1,000  sold 
per  full-time  sales-person  de- 
creased. This  condition  holds 
generally  for  all  stores  and 
also  for  stores  classified  by 
size  and  by  amount  sold  per 
full-time  sales-person. 

(2).  From  year  to  year,  the 
amounts   of   wages   and   sal- 


aries per  $100  of  selling  ex- 
pense per  $1,000  of  sales  per 
full-time  sales-person  de- 
creased. 

(3).  The  amount  of  sales  per  full- 
time  sales-person  increased 
between  1914  and  1918,  and 
1918  and  1919. 

(4),  Wages  and  salaries  in  terms 
of  sales,  of  selling  expense, 
and  in  terms  of  either  per 
stock  turnover  or  per  $1,000 
sold  per  full-time  sales-per- 
son, decrease  as  the  amounts 
of  sales  per  full-time  sales- 
person increase.  This  holds 
for  all  stores  and  for  stores 
of  a  given  size. 

(5).  For  stores  with  a  given 
amount  of  sales  per  sales-per- 
son, the  amounts  of  wages 
and  salaries  per  $100  of  total 
net  sales  and  per  $100  of 
total  net  sales  per  stock  turn- 
over increase  as  the  stores  in- 
crease in  size,  while  the 
amounts  of  wages  and  sal- 
aries per  $1,000  sold  per  full- 
time  sales-person  decrease  as 
stores  increase  in  size. 

(6).  For  stores  with  a  given 
amount  of  sales  per  full-time 
sales-person,  the  amounts  of 
wages  and  salaries  per  $100 
of  selling  expense,  per  stock 
turnover,  and  per  $100  of 
selling  expense  per  $1,000 
sold  per  full-time  sales-per- 
son decrease  as  the  stores  in- 
crease in  size. 


256 


(7).  The  amounts  of  sales  per  full- 
time  sales-person  increase  as 
the  size  of  the  store  increases, 
and  decrease  as  the  wages  and 
salaries  per  $100  of  total  net 
sales  increase. 

(8).  The  amounts  of  sales  for  each 
$100  of  wages  and  salaries 
decrease  as  the  stores  increase 
in  size  and  increase  as  the 
amounts  sold  per  full-time 
sales-person  increase. 

(9).  When  stores  of  a  given  size 
are  classified  by  size  of  city 
in  which  they  are  located, 
wages  and  salaries  per  $100  of 


total  net  sales,  expressed 
either  in  simple  or  in  complex 
units,  decrease  as  the  sales 
per  full-time  sales-person  in- 
crease. 

(10).  "When  stores  of  a  given  size 
are  classified  by  size  of  city 
in  which  they  are  located,  the 
amounts  of  wages  and  sal- 
aries per  $100  of  selling  ex- 
pense alone  tend  neither  to 
increase  nor  to  decrease, 
while  the  amounts  in  terms 
of  both  selling  expense  per 
stock  turnover  and  selling 
expense  for  the  amount  sold 


TABLE  176 

AMOUNT  OP  WAGES  AND  SALARIES  PER  $100  OF  TOTAL  NET  SALES  PER  STOCK  TURN- 
OVER,   FOR    STORES    CLASSIFIED   BY    SIZE    AND    BY    METHOD   OF 
PAYING    REGULAR    SALESMEN,     1919 


Cluslfle« 

To  til 
net  E«le= 

BettKxl 

of 

C«iqwna«tloa 

Ifumber 

or 
Stores 

Bages  and  Salaries  per  JlOO  of  Total  Set  Sales 

Wages  and  Salarlea  per  (100  of  Total  Net  Sales 
per  Stock  Turnover 

Ajaoxtnt 

Per  Cent. 

Aaount 

Per  Cent, 

Oraphle                     j   ^^^^^ 
)     20      40     60     80   100   120   140 

Orophli:                           |  Actual 
0     20      40     60     80   100  120  140  160 

Total 
(ATCrago ) 

254 

$6.17 

100.0 

*2.94 

100.0 

Total 
(Average ) 

Straight  Salary 
Salary  h  CoraniEfilon 

lav 

57 

5.98 

6.55 

96.9 

105.8 

2.99 
2.72 

— 

Total 
(AyOTBge) 

26 

4.58 

71.0 

2.92 

99.5 

ttodcr  i40 

Straight  Salary 
Salary  k  CoiraalaBlon 

25 
5 

4.52 

5.86 

73.5 

£2.6 

3.01 
2^ 

102,4 
87.4 

Total 
jAToraee) 

97 

S.'-C 

88. S 

S.05 

103.1 

I 

»«  to  ^ 

Straight  Salary 
Salary  k  CoiailssloQ 

65 
12 

5.58 
4.68 

90.4 

75.9 

5.10 
2.60 

10S.4 
88.4 

Total 
(Average ) 

89 

6.68 

108. S 

5.52 

$80  to  }183 

Stna^t  Salary 
Salary  Jt  Commission 

65 

24 

6.;2 
7.58 

102.4 
122.9 

5.16 

145.2 

■ 

Total 
(Average) 

40 

6.18 

100.2 

2.29 

$160  &  oytT 

Straight  Salary 
Salary  k  Comliclon 

24 
16 

97.6 
102.6 

• 

82.0 
69.7 

6.54 

2.0^ 

Average  (2.94 


257 


TABLE  i: 


AMOUNT   OF    WAGES   AND    SALARIES   PER   $100    OP    TOTAL    NET    SALES    PER    $1,000    01 

SALES  PER  FULL-TIME   SALES-PERSON,   FOR  STORES   CLASSIFIED   BY   SIZE 

AND   BY   METHOD   OF   PAYING   REGULAR   SALESMEN,    1919 


ClUfiriad 

Ucthod 

or 

Mu>l>or 

of 
Storoa 

aacea  an]  Salaries  per  $100  or  Total  Not  Salea 

Wages  Qftd  Salaries   por  JlOO  of  Total  Met   Sales 
per  ;i,000   of   Sales   per  P-.ll-tliao   Saloa-porson 

Aaio'inC 

Per  Cent. 

Ajno^mt 

Per  Cent. 

(m  ooo'ai 

<='-■*■''                         1  Act.«l 
■)     20      40      60      80    100    ICO   laO 

*'"-'=                           1  Actual 

0      m      40      so      00    100    120    140 

To  tad 

364 

J6.17 

100.0 

iO.JO 

Tot.l 

SCralgnt  Salarr 
Salary  ti  Corrilssloc 

19T 

S7 

S.98 
6.SS 

96.9 

105.8 

0.30 
0.32 

100.0 
106.7 

U.cr..  y ) 

Total 
(Aver«*:a  J 

28 

4.38 

71.0 

0.25- 

83.3 

Dba*r  ^0 

23 

9 

4.52 

3.86 

73.3 
62.6 

0.27 
0^15 

90.0 
50.0 

'  Zmlmrj  A  Comlaslon 

— 

1                 Total 

97 

S.4« 

88.5 

0.53 

110.0 

$40  to  Sao 

(AYcrag.) 

83 
12 

9.58 
4.68 

90. a 

75.9 

0.24 
0.30 

113.3 
100.0 

iAltrj  a  Coauaalcm 

Total 

69 

6.e8 

108.3 

0.34 

U3.3 

tBO  to  $1S0 

Uwrago) 

65 
24 

6.J2 

7.58 

102.4 
122.9 

0,33 
0.37 

110.0 
123.  J 

fi»l*rr   k    COBWllStOD 

Total 

40 

6.18 

100.2 

0.26 

86.7 

8lS0  k  oTor 

(ATOrage) 

; 

24 

16 

B.02 
6.34 

97.6 
102.8 

0.23 
0.30 

76.7 
100.0 

-«-i»i6E-    .»«^«r7 

J 

. 

Avaroge  J6.17 


Avcrago  )0.3O 


per  full-time  sales-person  de- 
crease as  the  sales  per  full- 
time  sales-person   increase. 

(2) — YEARLY  AMOUNTS  OF  WAGES 
AND  SALARIES  IN  RELATION  TO 
THE  METHODS  BY  WHICH  SALES- 
MEN ARE  PAID. 

Tables  176  to  183,  inclusive,  are 
submitted  as  throwing  light  on  tbe 
question — Are  wages  and  salaries, 
wlien  measured  in  terms  of  sales,  or 
selling  expense  alone,  or  when  com- 
bined with  stock  turnover,  and  sales 
per  full-time  sales-person,  higher  or 
lower  in  stores  where  straight  salaries 


are  used  than  in  stores  where  salaries 
and  a  commission  or  a  bonus  are  paid 
to  salesmen? 

A. — YEARLY  AMOUNTS  OF  WAGES  AND 
SALARIES  PER  $100  OF  TOTAL  NET 
SALES  AND  PER  $100  OF  SELLING 
EXPENSE,  FOR  STORES  CLASSIFIED 
BY   SIZE,   1919. 

Without  repeating  the  substance  of 
the  discussion  on  pages  118  to  127, 
which  had  to  do  with  an  analysis  of 
total  selling  expense  in  terms  of  sales 
and  total  operating  expense  for  stores 
paying  their  salesmen  by  different 
methods,  it  will  suffice  to  summarize 


258 


the  data  in  Tables  176  to  183,  inclu- 
sive, bearing  upon  the  amounts  of 
wages  and  salaries  paid  to  salesmen 
in  stores  which  pay  their  salesmen 
according  to  the  methods  indicated. 

In  these  tables,  the  stores  are  clas- 
sified, first,  by  size,  and  second,  by 
the  methods  of  compensating  regular 
salesmen,  distinction  being  made  for 
the  stores  using  straight  salaries  as 
contrasted  with  those  which  use  sal- 
aries and  commission. 

When  wages  and  salaries  are  ex- 
pressed in  terms  of  sales,  as  in  Tables 
176  and  177,  the  average  amounts  are 
lower  for  stores  using  straight  salaries 
in  five,  and  lower  for  stores  using 
salaries  and  commission  in  seven  of 


the  groups.*  When  they  are  ex- 
pressed in  terms  of  selling  expense, 
as  in  Tables  178  and  179,  they  are 
lower  for  straight  salaries  in  three 
and  lower  for  salaries  and  commission 
in  nine  of  the  groups.  In  these  group- 
ings both  the  simple  and  complex 
units  are  counted.  When  the  amounts 
are  expressed  in  terms  of  $100  of 
sales  and  $100  of  selling  expense, 
they  are  lower  where  straight  sal- 
aries predominate  in  three  of  the 
groups  and  where  salaries  and  com- 
missions are  used,  in  five  of  the 
groups.  When  they  are  expressed  in 
terms  of  sales  and  selling  expense  per 

*  The  low  averages  in  the  various  tables 
are  underlined. 


TABLE  178 

AMOUNT  OF  WAGES  AND  SALARIES  PER  $100  OF  SELLING  EXPENSE  PER  STOCK  TURN- 
OVER,   FOR   STORES    CLASSIFIED    BY    SIZE    AND    BY    METHOD    OF 
PAYING    REGULAR    SALESMEN,     1919 


Method 

of 

Conpenaatlon 

of 

,.i.,.o3  or.u  EalaS-los  por  ClOO  of  Selllnc  iiponso 

Viagea  and  Solaries  per  ilOO  of  Selling  Ejqjonse 
per  Stock  Tijrnovcr 

Total 

Per  Cent. 

Ajnount 

Per  Cent. 

(In  OOO'o) 

.  Airto>jjit 

Ciaphlo                          1 

Aotual 
0      20      40      60      60    100    120    14ol 

Graphic                                   1 

Aotual 

0    -20      40      60      60    100   120    140   160    180 

Total 
(Average) 

254 

063.21 

100.0 

*30.10 

100.0 

Total 
(*vor«c«) 

Strnlebt  Salary 
Salary  t  Coinnloslon 

197 
57 

84.83 
60.48 

102.7 
95.7 

32.45 
25.20 

107.0 

: 

Total 
(Averace ) 

23 

71.97 

113.9 

47.98 

159.4 

Dbder  Uo 

Stral^t  Salary 
Salary  &  CoinntSBlon 

23 
S 

77.16 
55.13 

! 

122,1 
87.2 

51.44 

170.9 
122.1 

■ 

Total 
(Average) 

97 

72.24 

114.3 

40.13 

133. S 

i 

(40  to  $80 

Straight  Salary 
Salary  &  CoimlaBlon 

85 
12 

72.92 
67.39 

115.4 
106.6 

40.51 
37.44 

134. S 
124.4 

Total 
(Average) 

89 

66.60 

105.4 

35.05 

116.4 

»80  to  $180 

Stralgtt  Salary 
Salary  h  Comnieslon 

65 
24 

66.23 
67.40 

'   104.8 
106.6 

33.12 

37.44 

'< 

UO.O 
124.4 

Total 
(Average) 

40 

57.84 

91.7 

21.46 

71.S 

: 

tlSO  t  orar 

Straltht  Salary 
Salary  &  Conslselon 

24 

16 

58.91 
56.99 

93.2 
90.2 

23.56 

18.38 

78  .5 
£1.1 

Average  $65.31 


259 


TABLE  179 

AMOUNT    OF    WAGES   AND    S.VLARIES   PER    $100    OF    SELLING   EXPENSE    PER    $1,000    OP 

SALES   PER   FULL-TIME   S.VLES-PERSON,   FOR   STORES   CLASSIFIED   BY    SIZE 

AND   BY   METHOD  OF  PAYING   REGULAR   SALESMEN,    1919 


Method 

of 

Coc;>«nsfttlon 

Hunger 

of 
Storef 

naees  and  Salaries  per  JlOO  of 
Selling  Expense 

tiaee;  ana  Salarioa  per  SlOO  of  Selling  Eipenae 
per  vl.ooo  of  Sales  per  Pull-tlna  Salee-pereon 

let.l 

ABOunt 

Per  Cent. 

Awnmt 

Per  Cent. 

(IB  OOO'c) 

Graphic 
0     20     40     60     80  100   120  140 

Actual 

**"•                                 JAetual 

1      20     40     60     80   100   120    140  160 

(Averoge) 

2M 

♦ej.21 

100.0 

♦S.ll 

100.0 

Tctid 

StTAleht  Sftlu*7 
SaJvT  &  Comlssloa 

197 
57 

64.89 
60,48 

1 

102.7 
95.7 

5.21 
2.95 

103.2 
94.9 

Unr^EP) 

; 

i 

7y>t«l 
(A.or.c) 

ZB 

71.97 

11S.9 

4.05 

130.2 

1 

: 

tkxlar  i*0 

Str«lE)it  S«lar7 
Salary  &  Congnlaslon 

6 

77.16 
65.15 

122.1 
67.2 

4.57 
2^19 

liO.e 
70.4 

: 

lyjtal 
(Averaao) 

97 

72.24 

m.j 

4.42 

142.1 

»«0  to  $80 

Sti-algjit  Salary 
Salary  fc  Cornnlaslon 

85 

12 

72.92 
t7.S8 

115.4 
106.6 

4.43 

4.M 

142.4 

139.2 

: 

Total 
(Avoraga) 

69 

66.60 

105.4 

3.43 

110,3 

480  to  tiBO 

Stralcht  Salary 
Salary  k  Cmnlealon 

&5 

24 

66.23 
67.40 

104.8 

106.6 

3.48 

3.31 

111.9 

106.4 

Total 
(Avarege) 

40 

57.94 

91.7 

'      2.45 

78.6 

: 

tUlO  k  over 

Stral^t  Salary 
Salary  It  Comnlaalon 

24 
IC 

56.91 
56. S9 

95.2 
90.2 

2.23 
2.68 

71.7 
86.2 

■ 

Averoge  $03-21 


turnover,  they  are  lower  in  two  of  the 
groups  where  salaries  alone  are  used 
and  lower  in  six  of  the  groups  where 
salaries  and  commissions  are  em- 
I)loyed,  When  they  are  expressed  in 
terms  of  sales  and  of  selling  expense 
per  $1,000  sold  per  full-time  sales- 
person, the  amounts  are  lower  in 
three  groups  where  straight  salaries 
are  used,  and  lower  in  five  cases 
where  salaries  and  commissions  are 
used.  No  account  is  taken  of  groups 
wherein  the  amounts  are  identical. 
Cumulating  this  evidence,  it  is  found, 
when  all  measures  are  used,  that  the 
amounts  are  lower  where  salaries  and 
commissions  are  employed  in  sixteen, 


and  lower  where  salaries  alone  are 
used,  in  eight  of  the  cases. 

Obviously,  the  tables  in  question 
have  other  iLses  than  those  of  indicat- 
ing the  relative  advantages,  so  far  as 
expenses  are  concerned,  of  using  dif- 
ferent methods  of  compensating  sales- 
men. The  norms  or  standards  them- 
selves are  of  interest,  reflecting,  as 
they  do  for  a  rather  large  experience, 
the  conditions  which  obtain  in  retail 
clothing  stores. 

Tables  180  to  183,  inclusive,  show 
the  amounts  paid  to  salesmen  in 
stores  classified  by  size  and  by  the 
use  or  non-use  of  bonuses. 

In  terms  of  sales,  the  amounts  of 


260 


wages  and  salaries,  as  shown  in  Tables 
180  and  181,  are  lower  in  every  case 
except  one  where  stores  paid  no 
bonuses.  When  they  are  expressed 
as  proportionate  parts  of  selling  ex- 
pense, as  in  Tables  182  and  183,  they 
are  lower  where  no  bonuses  are  paid 
for  seven  groups  of  stores  and  lower 
where  bonuses  are  paid  in  five  of  the 
groups. 

"When  they  are  measured  in  terms  of 
sales  and  of  selling  expense  alone,  as 
in  Tables  180  and  182,  they  are  lower 
in  seven  cases  where  bonuses  are  not 
used  and  lower  in  one  where  they  are 
used.     When  they  are  expressed  in 


terms  of  sales  and  of  selling  expense 
for  each  turnover,  as  in  Tables  180 
and  182,  they  are  lower  where  bonuses 
are  not  paid  in  six  of  the  eases  and 
lower  where  bonuses  are  paid  in  two 
of  the  cases.  When  they  are  expressed 
in  terms  of  sales  and  of  selling  ex- 
pense per  $1,000  sold  per  full-time 
sales-person,  as  in  Tables  181  and 
183,  they  are  lower  where  bonuses  are 
not  paid  in  five,  and  where  bonuses 
are  paid  in  two  of  the  cases.  Cumu- 
lating the  evidence,  therefore,  the 
amounts,  when  measured  in  all  the 
different  units,  are  lower  in  eighteen 
cases  where  no  bonuses  are  paid,  and 


TABLE  180 

AMOUNT  OF  WAGES  AND  SALARIES  PER  $100   OF  TOTAL  NET  SALES  PER  STOCK  TURN- 
OVER,   FOR    STORES    PAYING    OR    NOT    PAYING    A    BONUS    TO    REGULiVR 
SALESMEN,     CLASSIFIED     BY     SIZE     OF     STORE,     1919 


Method 

of 

Conpo  nfi  a  1 1  on 

Number 

of 
Stores 

Wa^cs  and  Salaries  per  $100  of 
Total  Net  Sales 

IVages  and  Salaries  per  $100  of  Total  Net  Sales 
per  Stock  Turnover 

Totcl 
Set  Bales 

Amount 

Per  Cent. 

An  aunt 

Per  Cent. 

(In  OOO'b) 

Graphic                       1  ^^^^j 
)     20     40      60     80  100   120 

'"'^^''                         1  Actual 
3     20     40     60     80  100   120  140 

Total 

254 

06.17 

100.0 

$2.94 

100.0 

Total 
(Average) 

T/ltb  Bonus 
Ti'lthout  BonuB 

60 
194 

6.85 
5.82 

; 

110.7 
94.3 

2.97 
2.77 

' 

101.0 
94.2 

; 

1 

; 

Total 
(Average) 

28 

4.58 

71.0 

2.92 

99.5 

; 

Dnder  J4C 

Wltb  BonuB 
without  BonnB 

5 
23 

4.78 

4.30 

77.5 
69.7 

3.19 
2.e7 

108.5 
97.6 

: 

Total 
(Avorage ) 

S7 

5.46 

88.5 

3.03 

(40   to   $80 

\!lth  Bonus 
Without  Bonus 

a4 

65 

6.69 
5.24 

108.4 
84,9 

3.55 

3.08 

113.9 
104.8 

1 

i 

Total 
(Average) 

69 

6.68 

108.5 

3.52 

119.7 

Sao   to   $180 

Blth  Bonus 
Without  Bonus 

26 
63 

7.16 
6.4e 

116.0 
105-0 

3.77 
3.41 

123.2 
116.0 

: 

Total 

40 

6.18 

100.2 

2.29 

77.9 

T.'lth  Bonus 
T;ithout  Bonus 

15 
25 

6.73 
5.70 

; 

109.1 
92.4 

2.59 
2.04 

: 

B8.1 
69.4 

1                ! 

: 

Averaee  $6.17 


Average  $2.94 


261 


TABLE  181 

AMOUNT  OF  WAGES  AND  SALARIES  PER  $100  OF  TOTAL  NET  SALES  PER  $1,000  OF  SALES 

PER  FULL-TIME  SALES-PERSON  FOR  STORES  PAYING  OR  NOT  PAYING  A  BONUS 

TO    REGLT.AR    S.VLESMEN,     CLASSIFIED    BY     SIZE    OF     STORE,     1919 


Uetbod 

of 

Coi-poMotion 

Kujnbor 

of 
Stores 

Wages  and  Salaries  per  ^100   of 
Total  Net  Sales 

iVases  and  Solortes   per   ClCO  of   Total  Kot  Sales 
per  $1,000  of  Sales  par  Pull-tine  Sales-peraon 

Total 
Hot  Sal*s 

Amount 

Per  Cent. 

Amount 

Per  Cent. 

Qraphle                  1  ;,^.^^i 
0     20      40      CO      80   100   120 

Graphic                        1  ^^,,,^1 
:      20      40      60      80   100   120   140 

Total 
(Avcraco) 

254 

06.17 

100.0 

$0.30 

TotU 

nith  Bonufl 
Ulthout  Bonijis 

60 
194 

6.83 
5.02 

110.7 
94.3 

0.30 
0.30 

100.0 
100.0 

; 

1 

Total 
(Avorogo ) 

za 

4.J8 

71.0 

0.25 

83.3 

Under  C-»0 

Kith  Bonus 
Mthout  Bonus 

S 

23 

4.78 
4.30 

77.5 
69.7 

0.27 
0.24 

90.0 
80.0 

Total 

(Avc-ra-c) 

97 

5.46 

80.5 

0.33 

110.0 

: 

£40  to  Seo 

Kith  Bonus 
riltbout  Bonus 

14 

83 

6.69 
5.24 

108.4 
84.9 

0.38 

0.33 

126.7 
110.0 

: 

Totnl 
(Avorace ) 

89 

6.68 

108.3 

0.34 

U3.3 

Sso  to  JlSO 

■..Ith  Bonus 
V;lthout  Bonus 

26 
6; 

7.16 

6. '.a 

116.0 
105.0 

0.36 
0.34 

120.0 
113.3 

Total 

40 

6.ie 

100.2 

0.26 

86.7 

$130  &  over 

Wltli  Boms 
Witliout  Bonus 

IS 
25 

6.73 

5.70 

109.1 
92.4 

0.26 
0.26 

86,7 
86.7 

1 

Average  ^.17 


Average   0C'»3O 


lower  where  bonuses  are  used  in  five 
cases. 

From  the  evidence  available,  it 
seems  safe  to  conclude  that  bonus  pay- 
ments, having  little  or  no  relation  to 
salesmen 's  activities,  result  in  making 
wages  and  salaries  relatively  high. 
On  the  other  hand,  when  commissions 
are  paid,  salesmen's  activities  are 
stimulated  with  the  result  that  wages 
and  salaries  in  terms  of  sales  are  rela- 
tively lower  under  such  conditions 
than  when  straight  salaries  alone 
obtain.* 

*  A  somewhat  different  conclusion  was 
reached    in    the   discussion    of    total    selling 


It  is  not  contended,  of  course,  that 
these  data  prove  a  causal  connection 
between  the  method  of  paying  sales- 
men and  the  expenses  involved.  With 
another  selection,  or  with  a  more  gen- 
erous sampling  of  stores,  the  conclu- 
sions might  have  been  different.  The 
tables  are  incorporated  in  the  study 
largely  because  they  represent  the 
information  available,  and  they  may 
be    useful    in    the    establishment    of 

expense  in  relation  to  the  methods  by  which 
salesmen  are  paid.  Obviously,  it  is  more 
satisfactory  to  rest  the  case  in  this  respect 
on  conclusions  drawn  from  an  analysis  of 
wages  and  salaries  alone  than  from  an  an- 
alysis of  tlie  total  selling  expense  into  which 
enter  expenses  other  than  wages  and  salaries. 


262 


TABLE  182 


AMOUNT  OF  WAGES  AND  SALARIES  PER  $100  OF  SELLING  EXPENSE  PER  STOCK  TURN- 
OVER,   FOR    STORES    PAYING    OR    NOT    PAYING    A    BONUS    TO    REGULAR 
SALESMEN,    CLASSIFIED    BY    SIZE    OF    STORE,    1919 


ClacElflcd 

Total 
Net  Sales 

Method 

or 

CompenBBtlon 

Number 

or 
Stores 

nages  and  Salaries  per  JlOO  of  Selling  Expense 

Wages  and  Salaries  per  $100  of  Selling  Supensa 
per  Stock  Turno«er 

Amoiint 

Per  Cent. 

Amo^int 
( 

Per  Cent. 

(In  OOO's) 

Grapblo                        1 

lActual 
D      20      40      60      80   100    120   140 

Graphic                                 1 

1    Actual 
20      40      60      80    100    120    140   160    180 

Total 
(Avci-nce) 

254 

$63.21 

100.0 

$30.10 

100.0 

1 

Total 

T;ith  Bonus 
iVlthO'it  BoiTiS 

60 
194 

62.33 
.  63.76 

93.6 
100.9 

27.10 
30.36 

90.0 
100.9 

(Average) 

^^^^"'^^  : 

Total 
fAverago) 

28 

71.97 

113.9 

47.98 

i 

; 

Under  $40 

'.ilth  Bonus 
'./Ithout  Bonus 

5 

23 

78.98 
70.54 

124.9 
111.5 

52.65 

47.03 

1 ' 

174.9 
156.2 

' 

Total 
(Avorago) 

97 

72.24 

114.3 

40.13 

: 

133.3 

i4o  to  ;eo 

'.VI  th  Bonus 
■Jit.-iout  Bonus 

14 
83 

80.78 

70.54 

127.8 
111.6 

40.  J? 
41.49 

134.2 
137.8 

1      II 

Total 
(Average) 

89 

66.60 

105.4 

35.05 

116.4 

; 

^^ 

iSO  to  Jl60 

'.Jlth  Bonus 
without  Bonus 

26 
63 

65.04 
67.36 

102,9 
106,6 

34.23 
35.45 

113.7 
117.8 

Total 
(Average) 

40 

57.94 

91.7 

21.46 

71.3 

; 

Jieo  l  over 

Wltil  Bonus 
VJltllout  Bonus 

IS 
25 

59.10 
66.82 

93.5 
69.9 

22.75 

20.23 

75.5 
67.4 

1 

Averaso  §63, 21 


Average  $S0.10 


norms  for  the  guidance  of  merchants 
in  this  field  of  distribution. 

4. — YEARLY  AMOUNTS  OF  WAGES  AND 
SALARIES  IN  RELATION  TO  THE  EX- 
PENDITURES FOR  RENT  AND  INVEST- 
MENTS IN  FIXTURES,  FOR  STORES 
CLASSIFIED  BY  YEARS,  BY  SIZE,  AND 
BY  LOCATION. 

The  discussion  of  the  amounts  of 
wages  and  salaries  follows  that  for 
the  corresponding  section  relating  to 
total  amounts  of  selling  expense,  and 
utilizes,  in  most  respects,  the  same 
units  of  comparison.* 

*  The  methods  by  which  these  units  are 
computed  are  erplained  on  page  4. 


(1) — YEARLY  AMOUNTS  OF  WAGES  AND 
SALARIES  IN  RELATION  TO  EXPEN- 
DITURES FOR  RENT  PER  100 
SQUARE  FEET  OF  FLOOR  SPACE. 

The  same  303  stores  which  are  used 
to  determine  the  relation  of  selling 
expense  to  expenditures  for  rent  per 
100  square  feet  of  floor  space,  are 
analyzed  below  in  the  study  of  wages 
and  salaries  for  stores  similarly 
grouped.  The  records  are  available, 
in  the  detail  given,  for  1919  only.  In 
view  of  the  discussion  of  selling  ex- 
pense in  relation  to  expenditures  for 
rent,  it  is  necessary  in  the  treatment 
of  wages  and  salaries  to  print  only 


263 


TABLE  183 


AMOUNT  OF  WAGES  AND  SALARIES  PER  $100  OF  SELLING  EXPENSE  PER  $1,000  OF  SALES 

PER  FLXL-TIME  SALES-PERSON,  FOR  STORES  PAYING  OR  NOT  PAYING  A  BONUS 

TO    REGULAR    SALESMEN,    CLASSIFIED    BY    SIZE    OF    STORE,     1919 


Uathod 

or 

ConponAatlon 

Nunbar 

of 
Storoo 

Vaces  and  Salaries  par  llOO  of  Selling  Expense 

nagea  and  Salaries  par  $100  of  Selling  Sxpeoae 
per  $1,000  of  Sales  per  Pull-time  Salea-poraon 

Total 

Amount 

Per  Cent, 

Amount 

Per  Cant. 

<ln  000'.) 

""P""                         1  Actual 
20     40     60     80  100  120  140 

"'^"f"'                            1  Actual 
0     20      40      60     BO    100    120    140   160 

Total 
(Averaga) 

25.1 

$63.21 

100  .o" 

03.11 

100.0 

Total 
(ATorm^) 

VI th  Bonus 
Without  Sonus 

60 
194 

62.33 
63.76 

98.6 
100.9 

2.75 
3.31 

es.« 

106.« 

^"    ! 

Total 
(Avoro5«) 

28 

71.97 

113.9 

4.05 

iso.a 

Ondsr  t40 

Tilth  Bonus 
Without  Bonus 

S 

2S 

78.98 
70.64 

124,9 
U1.6 

4.39 
3.98 

141,2 
128.0 

■ 

Total 
(Avaraga) 

97 

72.24 

114.3 

4.42 

142.1 

: 

t40  to  180 

VI  tb  Borjis 
Without  Bonus 

14 

83 

80.78 
70.54 

127.8 
111.6 

4.55 
1.28 

145,5 
140. a 

1  1 II  1   1  aiH 

Total 
(Av«ra»;e) 

89 

66.60 

105.4 

3,43 

110.3 

tso  to  $1S0 

With  Bonus 
Without  Bonus 

26 
63 

6S.04 
67.36 

102.9 

106.6 

3.27 
3.51 

105.1 
112.9 

; 

Total 
(Avorago) 

40 

57.94 

91.7 

2.45 

78.9 

i 

tlSO  &  OTor 

Vith  Bonus 
Without  Bonus 

15 
25 

59.10 
50.82 

93.5 

89.9 

2.33 

2.55 

74.9 
82.0 

; 

^^^^    ; 

Average  $65.21 

Average  J3.U 

those   tables   which   have    particular 
application  to  the  subject. 

A. — Yearly  Amounts  of  Wages  and 
Salaries  per  $100  of  Total  Net 
Sales  and  per  $100  of  Selling  Ex- 
pense, for  Stares  Classified\  hy 
Size,  1919. 

Table  184  shows  the  amounts  of 
w'ages  and  salaries  per  $100  of  total 
net  sales  and  per  $100  of  total  net  sales 
for  the  amount  sold  per  square  foot 
of  floor  space  for  303  stores,  classi- 
fied by  size  and  by  expenditures  for 
rent  for  each  100  square  feet  of  floor 
space    used.    Attention   has   already 


been  called  to  the  fact  that  expendi- 
tures for  wages  and  salaries,  meas- 
ured in  terms  of  sales  increase,  and, 
when  expressed  in  terms  of  sales  and 
the  amounts  sold  per  unit  of  floor 
space,  decrease  as  stores  increase  in 
size.  Of  chief  interest  now  are  the 
amounts  expressed  in  both  units  for 
stores  with  varying  expenditures  for 
rent. 

It  will  be  recalled  from  an  earlier 
discussion  that,  for  a  given  amount 
of  sales,  less  floor  space  is  used  when 
rentals  are  high  than  when  they  are 
low,  and  this  fact  should  be  kept  in 
mind  in  interpi-eting  the  details  of 


264 


Table  184  wherein  the  amounts  are 
expressed  in  the  unit  of  sales  made 
on  a  given  floor  space. 

When  the  stores  are  classified  by 
size,  the  general  tendency  for  two  of 
the  groups  of  stores  is  for  the  amounts 
of  wages  and  salaries  per  $100  of 
total  net  sales  to  increase  as  the 
amounts  expended  for  rent  per  100 
square  feet  of  floor  space  increase. 
For  the  remaining  groups,  the  direc- 
tion of  change  is  uncertain.  An  in- 
crease, however,  would  normally  be 
expected  in  view  of  the  fact  that 
wages  and  salaries,  relative  to  sales, 
are  high  in  the  large  stores,  and  it  is 
these  stores  in  which  the  rentals  rela- 
tive to  floor  space  are  high. 

The  store-groups  which  have  large 
amounts  of  wages  and  salaries  in 
terms  of  sales  have  small  amounts 
when  they  are  expressed  in  terms  of 
the  amounts  sold  per  square  foot  of 
floor  space.  "Within  each  group  of 
stores,  when  classified  by  size,  they 
decrease  as  the  rent  paid  per  100 
square  feet  of  floor  space  increases. 
This  is  to  be  expected  in  view  of  the 
rduced  floor  space  which  accompanies 
high  rentals.  That  is,  as  the  rents 
paid  per  100  square  feet  of  floor  space 
increase,  there  is  a  tendency  to  save 
on  the  space  occupied,  thus  producing 
larger  amounts  of  sales  for  each  unit 
of  space.  When  the  amounts  of 
wages  and  salaries  are  divided  by 
sales  and  further  by  the  amounts  sold 
per  unit  of  floor  space,  they  are  re- 
duced. The  extent  of  this  reduction 
in  the  different  store-groups  may  be 
seen  by  consulting  Table  184. 

In  an  earlier  discussion  it  is  shown, 


as  a  result  of  studying  various  groups 
of  stores,  that  the  amounts  of  wages 
and  salaries,  as  proportions  of  sell- 
ing expense,  decrease  as  stores  in- 
crease in  size.  It  is  also  shown,  when 
they  are  measured  in  terms  of  sales 
made  per  square  foot  of  floor  space, 
that  they  decrease  as  stores  increase 
in  size.  Table  185  confirms  both  of 
these  tendencies.  Interest,  at  this 
point,  however,  is  not  so  much  in  the 
relative  size  of  wages  and  salaries  for 
stores  of  different  size  as  it  is  in  the 
relative  amounts  for  stores  of  the 
same  size,  but  with  different  expendi- 
tures for  rent  per  square  foot  of  floor 
space.  The  details  of  Table  185  show 
that  for  each  group  of  stores,  when 
classified  by  size,  there  is  a  tendency 
for  the  proportions  which  these 
amounts  constitute  of  total  selling  ex- 
pense, to  decrease  as  the  amounts 
spent  for  rent  per  square  foot  of  floor 
space  increase. 

When  wages  and  salaries  are  ex- 
pressed as  proportionate  parts  of  sell- 
ing expense  and  these  in  turn  are 
divided  by  the  amounts  sold  per 
square  foot  of  floor  space  they  rapidly 
decrease  as  expenditures  for  rent  in 
terms  of  floor  space  increase.  This  is 
to  be  expected  in  view  of  the  fact,  as 
noted  above,  that  with  high  rents 
there  is  a  tendency  for  stores  to  save 
in  floor  space.  The  nature  of  these 
decreases  as  well  as  the  actual 
amounts  may  be  seen  by  consulting 
the  details  of  Table  185.  The  graphic 
part  of  the  table  throws  into  bold 
relief  the  unmistakable  tendency 
which  characterizes  the  amounts  in 
each  group  of  stores. 


265 


TABLE  184 


AMOUNT  OF  WAGES  AND  SALARIES  PER  $100  OF  TOTAL  NET  SALES  FOR  THE  AMOUNT 

SOLD  PER  SQUARE  FOOT  OF  FLOOR  SPACE,  FOR  STORES  CK:VSSIFIED  BY  SIZE  AND 

BY  AMOUNT  OF  RENT  PER  100  SQUARE  FEET  OF  FLOOR  SPACE,  1919 


iBnnt  of 
Bant  POT  aoo 

•q.  ft.  of 
Hoot  Spw* 

Sind>«T 

of 
Storoa 

Vmgoa  and  Salarlaa  p«r  IllOO  of  Total 

Rat  Salae 

Wages  and  Salarlea  por  flOO  of  Total  Hot  Solea 
par  Salaa  per  Square  Poot  of  Floor  Space 

ciusiri*d 

Tot«l 

AS^TUBt 

Per  Cant. 

^ 

Par  Cant. 

(In  OOO'b) 

Orapblo 
0      20      40      60      80    100    120  140   160 

Aotual 

3     20     40     60     80   100   120   140  160  180 

Tot»l 
(ATer»Fo) 

503 

16.54 

100.0 

t0.2« 

100  .o 

UaieT  tCO 
ISO  to  |40 

|4o  to  leo 

jeo  4  over 

54 

120 
65 

66 

9.28 
5.75 
7.27 
5.97 

141.9 
67,9 

111.2 
91.5 

0,55 

■   «.:o 

0.27 
O.IS 

211. S* 
11S.« 
109.S 
61. S 

(ATe>r«s») 

^^^^^^ 

; 

TDt*l 
(Avars r«) 

4S 

4.48 

68.5 

0.51 

U9.2 

Oador  ISO 

ISO    to   |40 
J40   to   »60 

|60  k  ever 

10 
2S 

7 
S 

5.25 
5.90 
4. 59 
6.59 

eo.o 

59.6 
69.7 
100. s 

0.64 
0.25 
0.29 
0.21 

246,2* 
88.  S 

lll.S 
80.8 

Tbilcr  |40 

: 

1 

1 

Tot»l 
(ATorapo) 

lis 

5.09 

77.8 

0,27 

103.8 

! 

Dndor  tZO 
ISO  to  |40 

|40  to  leo 

|60  4  over 

16 
48 
25 

E6 

5.01 
4.41 

5.42 

6.00 

76.6 
67.4 
82,9 

91.7 

0.50 
0.25 
0.25 
0.20 

192.5* 
88.5 
96.2 
76.9 

^"*"^""    • 

Tot«a 

(ATor*^ } 

1C2 

6.54 

100.0 

0.28 

107.7 

Onler  ISO 
ISO  to  |«0 
|40  to  |60 
ISO  4  ovor 

6 
41 
25 
52 

6.64 
6,60 
6.55 

6.se 

101.5 
104.0 
97.1 
9T,2 

0.42 
0.55 
0,25 
0.19 

161.5 
1S4.6 
S6.2 
7S.1 

|30   to   llBO 

: 

I 

1 

Tot»l 
(Aversge ) 

45 

7. so 

U1.6 

0,21 

80  .8 

Under  ISO 
ISO  to  |40 
♦40  to  160 
|eo  k  oTor 

2 

6 
10 
2S 

IS.  69 
5.85 
e.55 
5.78 

209.5* 
89.4 

150.7 
88.4 

0.52 
0.25 
0.23 
0.15 

123.1 
96.2 

107.7 
67.7 

Siao  h  crm 

B. — Yearly  Amounts  of  Wages  and 
Salaries  per  $100  of  Total  Net 
Sales  mid  per  $100  of  Selling 
Expense,  for  Stores  Classified  hrj 
Size  of  City  in  Which  Located* 
1919. 

The  actual  amounts  of  rent  paid, 
as  well  as  the  relations  which  they 

*  Population  figures  are  for  1920. 


Avera^  $0.20 

*Pull  length  not  ahcvn 

bear  to  the  floor  space  utilized,  are 
determined  in  large  part  by  the  size 
of  the  city  in  which  the  stores  are 
located.  Accordingly,  it  was  neces- 
sary to  classify  by  location  the  303 
stores  studied  in  Tables  184  and  185. 
Two  city-groups  have  been  used  for 
this  purpose — those  with  population 
under  40,000  and  those  with  popula- 
tion of  40,000  and  over.     For  each 


266 


group  of  stores,  as  located,  a  further 
classification  has  been  made  accord- 
ing to  the  rent  expenditures  per  100 
square  feet  of  floor  space.  For  each 
group  of  stores  in  this  detail,  the 
amounts  of  wages  and  salaries  per 
$100  of  total  net  sales  and  per  $100 
of  total  net  sales  for  the  amounts  sold 
per  square  foot  of  floor  space  have 


been  determined.    They  are  shown  in 
Table  186. 

For  the  225  stores  located  in  the 
small  cities  and  for  the  78  stores 
located  in  the  large  cities,  there  is 
no  unmistakable  tendency  for  the 
amounts  of  wages  and  salaries  per 
$100  of  total  net  sales  to  increase  or 
to   decrease   with   the   amounts    ex- 


TABLE  185 

AMOUNT   OF   WAGES   AND    SALARIES   PER   $100    OP    SELLING   EXPENSE   PER   SALES   PER 

SQUARE    FOOT    OF    FLOOR    SPACE,    FOR    STORES    CLASSIFIED    BY    SIZE    AND    BY 

AMOUNT  OF   RENT  PER   100    SQUARE   FEET   OF   FLOOR   SPACE,    1919 


ClUBlfl«4 

Total 
Bst  Salee 

H»ot  per  100 
»«.  ft.  of 
Floor  Spue 

IhjKbor 

of 
StorOB 

Wages  and  Salaries  per  $100  of 
Selling  Scpense 

Wagos  end  Salaries  per  $100  or  Selling  Expeose 
per  Sales  por  Square  Foot  of  Floor  Space 

Aaonut 

Per  Cent. 

Amount 

Per  Cent. 

(IB  OOO'l) 

Oraphlo 
}     20     40      60     eo  100  120  140 

Aehial 

Or^I^c                                  1   Actual 
0     20     40      60     80  100   120  140   160   180  200 

Total 
(ATorago ) 

SOS 

$6S,S6 

100.0 

$2.59 

1 

: 

ttedar  tZO 
120  to  $40 
$40  to  |60 
»60»ovor 

94 

120 
63 

86 

77.6» 
70.59 
68. 6» 
56.41 

U6.9 

106.9 
104.3 
88.7 

4.63 

3.63 
2.68 
1.61 

178.8 
140.2 
99.6 
62.2 

Total 
(Averegcl 

■— ■" 

Total 
(Avorago) 

4S 

69.37 

lOS.S 

4.S4 

DniJsr  $20 
$20  to  $40 
$40  to  $60 
$60  &  OTor 

10 
2S 

7 

71.61 
67.56 

ee.so 

7S.76 

ioe.7 

102.3 
105.7 
115.0 

8.71 
3.96 
4.41 
2.40 

336.5^ 
152.9 
170.3 
92.7 

Older  $40 

Total 
UT»rag») 

US 

71.51 

108. S 

5.82 

147.  S 

Qidu-  $20 
$20  to  $40 
$40  to  $60 
$60  ft  OTor 

16 

4a 

23 
26 

75.57 
69.61 
71.73 
71.10 

114.8 
105.7 
108.9 

loa.o 

7.50 
3.69 
S.SO 
2.55 

289.6' 
142.5 
127.4 
90.0 

»4o  to  »eo 

"J"J"" 

Total 
(AToraga) 

102 

66.79 

; 

101.4 

2.85 

110.0 

QvSer  $20 
$20  to  $40 
$40  to  $60 
$60  ft  over 

6 
11 
23 
32 

75.59 
72.41 
70. SS 

se.os 

; 

111.5 
110.0 

106.9 
S8.2 

4.68 

3.76 
2.75 
1.78 

ieo.7 

145.2 
10S.4 
68.7 

teo  to  Sifio 

""■^ 

^^^mv^mtM 

^^   """"T 

Total 

45 

63.73 

96.8 

1.82 

70.3 

tbder  $20 
$20  to  $40 
$40  to  $60 
$60  »  OTor 

2 
6 
10 
25 

79.63 
65.40 
67.38 
56, 58 

120.9 
99.5 

102.3 
85.9 

2.82 
2.82 
2.22 
1.42 

108.9 
106.9 
85.7 
54.8 

tlSOft  onr 

^^^^^^^; 

: 

-«— 

AT«r«C»  $65*85 


Avora^e  ^2.S8 


*FalX  lenc;th  not  siiama 


267 


pended  for  rent  per  100  square  feet 
of  floor  space.  The  average  amount 
for  the  stores  in  the  small  cities  is 
noticeably  less  than  that  for  the  stores 
in  the  large  cities.  Respectively,  they 
are  $5.92  and  $7.15.  Moreover,  the 
amounts  for  stores  with  the  same  ex- 
penditure for  rent,  but  with  different 
location,  are  higher  for  the  stores  in 
the  large  than  for  those  in  the  small 
cities. 

When  the  amounts  of  wages  and 
salaries  per  $100  of  total  net  sales 
for  the  amounts  sold  on  each  square 
foot  of  floor  space  are  determined  for 
the  stores  with  different  location  and 
different  expenditures  for  rent,  the 


average  for  the  stores  in  the  large 
cities  is  less  than  that  for  the  stores 
in  the  small  cities,  and  within  each, 
city-group  the  amounts  decrease  as 
the  expenditures  for  rent  increase. 
This  tendency  is  likewise  to  be  ex- 
pected in  view  of  the  general  con- 
clusion that  the  higher  the  rent  paid 
per  unit  of  floor  space,  the  smaller  is 
the  floor  space  used  for  a  given 
amount  of  sales. 

Attention  should  be  called  to  the 
fact,  however,  that  in  Table  186  no 
distinction  is  made  for  stores  of  dif- 
ferent size.  When  a  city  classifica- 
tion is  used,  however,  the  stores  are, 
on  the  average,  smaller  in  the  small 


TABLE  186 

AMOUNT   OF   WAGES    AND   SALARIES    PER   $100    OF   TOTAL   NET   SALES   PER    SALES    PER 

SQUARE    FOOT    OF    FLOOR    SPACE,    FOR    STORES    CLASSIFIED    BY    SIZE    OF    CITY 

AND  BY  AMOUNT  OP  RENT  PER  100  SQUARE  FEET  OF  FLOOR  SPACE,  1919 


AaOTint  of 
Rent  por  100 
•q.   ft.   of 
noor  Spae# 

Ktjinbcr 

of 
Stores 

Wages  and  Salaries  per  iilOO  of  Total  Met  Sales 

Vlagea  and  Salarlaa  per  #100  of  Total  Met  Sales 
per  Sales  per  Square  Poot  of  Floor  Spaoe 

of 

CltT 

<ln  005'«) 

Aaount 

Per  Cent. 

ABOvmt 

Per  Cent. 

GrapMc                             [Actual 
3     20     40     60     80   100  120  140  160 

Opamie                      JAetual 
J     20     40     60     80  100  120   140 

Total 

JO  3 

#6.54 

100.0 

#0.26 

100.0 

Dsdar  #20 
$20  to  UO 
*40   to   t«0 
t60  i   OT9P 

54 

120 
63 
66 

9.28 
5.75 
7.27 
5.97 

141.9 
87.9 

111.2 
91.3 

0.55 
0.50 
0.27 
0.16 

2U.5* 
US.4 
103.8 
61.5 

Total 

T 

Urorage) 

Total 
(Anraga) 

225 

S.92 

90.5 

0.28 

107.7 

; 

Under  tSO 
420  to  »40 
}40  to  t«0 
t«0  i  o».r 

52 

no 

El 
52 

5.63 

8.60 
6.05 
5.83 

7.15 

86.1 
05.6 
101.8 
89.1 

0.50 
0.27 
0.27 

o.ia 

192.5* 
103.8 
103.8 
69.2 

^ 

; 

• 

Total 
(ATorago ) 

78 

109.3 

0.22 

64. e' 

; 

rJaX»T  tzo 
#20   to   #40 
#40  to   #60 
#eo  &  OTar 

2 
10 
12 
S4 

13.69 
6.88 
8.02 
6.00 

209.3* 
105.2 
122.5 
91.7 

0.32 
0.51 
0.27 
O.IS 

123.1 
196.2* 
103.8 
61.5 

r" 

OT«r 

^^I^M 

^                            1             1 

■ ■                         ' 

ago  #6.54 


ATwage  #0.25 

*FulI  lengtli  not  (hora 


268 


TABLE  187 

AMOUNT   OF   WAGES    AND    SALARIES    PER   $100    OF    SELLING   EXPENSE   PER    SALES    PER 

SQUARE  FOOT  OF  FLOOR  SPACE,  FOR  STORES  CLASSIFIED  BY  SIZE  OF  CITY  AND 

AMOUNT   OF    RENT  PER   100    SQUARE   FEET  OF   FLOOR   SPACE,    1919 


Amount  of 
Ront  por  100 
rq.   ft.   of 
Floor  SpacQ 

of 

Storea 

Wages  and  Salaries  per  $100  of 
Selling  Expense 

ViageB    ajid   Salaries   por,$100   of   SeHln,7  txpjriso 
per  Sales  per  Squaro  Foot  of  Floor  bpoco 

SI  IS 

of 

city 

(In  OOO's) 

Amount 

Per  Cent. 

Amount 

Por  Cent . 

0      20      40      60     80    100    120   140 

'>r''J'"'<:                                         Actual 

p      20      40      60      no    100    120    140    160    130    200 

Total 
(Average) 

303 

«65.85 

100.0 

$2.59 

100.0 

• 

Undor  S20 
t20  to  %V1 
t40  t6  460 

»60  t  ovor 

M 

120 
63 

86 

T7.69 
70.39 
68.63 
58.41 

118.0 
106.9 
104.3 
88.7 

4.53 

3.63 
2.58 
1.61 

178.8 
140.2 
99.5 
62.2 

Totil 

III                          III  ■ 

(Avernge) 

; 

; 

Total 
(ATsrago) 

225 

71.46 

108.5 

3.42 

132.0 

; 

Under  tZO 
t20  to  ttO 
t*0  to  $60 
»S0  a,  over 

32 
110 
SI 
32 

74.08 
70.69 
72.65 
69.64 

112.5 
107.3 
110.3 
105.8 

6.63 
3.42 
2.94 
2.15 

256.0' 
132.0 
113.5 
83.0 

Undsr 
40 

■II  ■                a 

: 

Total 
(Average) 

78 

61.38 

94.0 

1.91 

73.7 

\ 

Under  tZO 
t20   to  Uo 
^40   to  J60 
$60  k  over 

2 

10 
12 
54 

79.63 
68.60 
64.93 
56.21 

120.9 
104,2 
98.6 
65.4 

1.86 
5.08 
2.21 
1.50 

71.8 

196.1 

as.3 

57.9 

40  >nd 

Averasa  }65.85 


Pull   length  not  shown 


than  in  the  large  cities.  This  would 
explain,  in  part,  the  difference  in  the 
totals  for  the  stores  in  the  two  city- 
groups. 

Table  187  classifies  the  303  stores 
in  the  same  form  as  Table  186.  The 
amounts  of  wages  and  salaries,  how- 
ever, are  expressed  in  Table  187  as 
proportionate  parts  of  selling  expense. 
When  stores  in  the  two  city-groups, 
taken  as  a  whole,  are  compared,  it  is 
found  that  the  average  amount  of 
wages  and  salaries  per  $100  of  sell- 
ing expense  is  $9.58  less  for  the  stores 
in  the  large  than  for  those  in  the 
small  cities.  The  actual  amounts 
are,  respectively,  $61,88  and  $71.46. 
Within    each    city-group,    when    the 


stores  are  classified  by  the  amounts 
of  rent  paid  per  square  foot  of  floor 
space,  wages  and  salaries  become  pro- 
portionately smaller  parts  of  the  sell- 
ing expense  as  the  rent  expenditures 
in  terms  of  floor  space  increase. 
There  are  some  exceptions  to  this 
general  rule,  but  they  are  inconse- 
quential. 

When  the  amounts  of  wages  and 
salaries,  as  proportionate  parts  of 
selling  expense,  are  further  expressed 
in  terms  of  the  sales  per  square  foot 
of  floor  space,  as  is  done  in  the  right- 
hand  columns  of  Table  187,  the  aver- 
ages are  smaller  for  the  stores  in  the 
large  than  for  those  in  the  small 
cities,   and   in  both   city-groups  the 


269 


amounts  decrease  as  the  expenditures 
for  rent  increase.  There  are  some  ex- 
ceptions to  this  rule,  but  they  are  not 
sufficient  to  invalidate  the  general 
conclusion. 

C — Yearly  Amounts  of  Wages  and 
Salaries  per  $100  of  Total  Net 
Sales  and  per  $100  of  Selling 
Expense,  for  Stores  Classified  hy 
Size  and  hy  Size  of  City  in  Which 
Located*  1919. 

Because  of  the  effect  which  the  loca- 
tion, as  well  as  the  size  of  stores,  has 
upon  the  amount  of  rent  paid  per 
square  foot  of  floor  space,  it  has  been 
thought  of  interest  to  select  for  special 
study  a  group  of  87  stores  having 
sales  in  1919  between  $40,000  and 
$80,000,  and  to  classify  them  accord- 
ing to  their  expenditures  for  rent  in 
terms  of  floor  space.    This  is  done  in 

*  Population  figures  are  for  1920. 


Table  188.  This  table  also  includes 
comparative  figures  for  stores  paying 
$60  and  over  in  rent  per  100  square 
feet  of  floor  space,  but  differently 
located.  The  methods  by  which 
amounts  of  wages  and  salaries  are 
measured  are  those  which  have  been 
used  throughout  this  study.  It  is 
worth-while  briefly  to  consider  the 
actual  amounts  measured  in  the  dif- 
ferent ways  and  the  tendencies  which 
characterize  them  under  different 
conditions  of  rent  expenditure. 

For  the  87  stores  located  in  cities 
with  population  of  less  than  40,000,  it 
cost  in  wages  and  salaries  $5.35  to 
sell  $100  worth  of  goods.  The  aver- 
age amount  per  $100  of  total  net  sales 
per  stock  turnover  was  $3.15 ;  per 
$100  of  total  net  sales  for  each  $1,000 
sold  per  full-time  sales-person  it  was 
$0.33 ;  and  in  terms  of  sales  for  the 
amount  sold  per  full-time  sales-per- 


TABLE  188 

RELATION  OP  WAGES  AND  SALARIES  TO  TOTAL  NET  SALES  AND  SELLING  EXPENSE,  FOR 

STORES    HAVING   SALES   BETWEEN    $40,000    AND   $80,000,    CLASSIFIED 

BY  SIZE  OF  CITY  AND  BY  AMOUNT  OF  RENT  PER  100 

SQUARE  FEET  OF  FLOOR  SPACE,   1919 


Anoont  of 

Bent  pep 

100  io.  ft. 

Floor  Space 

number 

of 
Storee 

Dages  and  Solarlel  per  (100  of  Total  Het  Sales 

Wages  and  Salaries  per  (100  of  Selling  I^:pense 

of 

city 

(In  ooo'e) 

Sales 
Alone 

Per 

Stock 

Turnover 

Per  (1,000  of 
Sales  per 

Pull-time 
Salea-peraon 

Per  Salee 
per  iq.  ft. 

of 
Floor  Space 

Selling 
Alone 

Per 

Stock 
Turnover 

Per  (1,000  of 
Salee  per 
Pull- tine 
Sales-person 

Per  Sales 
per  sq.  ft. 

of 
Floor  Space 

ATer*«e 

87 

(5.56 

(5.15 

(0.S9 

(O.Sl 

(72.60 

(42.71 

(4.42 

(4.17 

Dollar 
40 

Itoder  (20 
(£0  to  (40 
(40  to  (60 
(60  k  OTor 

U 
43 
17 
14 

5.27 

4.es 

6.11 
5.69 

2.64 
S.08 
5.S9 
S.S6 

C.28 

0.29 
0.40 
0.S7 

0.5S 
0.26 
0.26 
0.21 

60.82 
71.16 
72.97 
69.97 

40.16 
44.49 

40.54 
4J.7S 

4.27 
4.24 

4.76 
4.60 

6.10 
4.00 
3.51 

e.61 

40  md 

(«0  b.   over 

10 

e.40 

2.7S 

0.37 

O.IS 

60.  6« 

90.29 

3.96 

2.11 

270 


son,  $0.31.  As  the  amounts  expended 
for  rent  per  unit  of  floor  space  in- 
crease, there  is  no  tendency  for  wages 
and  salaries  in  terms  of  sales  alone 
either  to  increase  or  to  decrease.  This 
is  not  true,  however,  when  the  amounts 
are  expressed  in  terms  of  sales  per 
turnover.  The  larger  the  amount  of 
rent  paid  per  square  foot  of  floor 
space,  the  larger  is  the  amount  of 
wages  and  salaries  expressed  in  this 
unit.  A  similar  increase  with  the 
amount  of  rent  per  100  square  feet  of 
floor  space  holds  also  for  wages  and 
salaries  expressed  in  terms  of  sales 
per  $1,000  sold  per  full-time  sales- 
person. On  the  other  hand,  the  ten- 
dency is  equally  certain  for  the 
amounts,  measured  in  terms  of  sales 
for  the  amount  sold  per  square  foot 
of  floor  space,  to  decrease  as  expendi- 
tures for  rent  per  100  square  feet  of 
floor  space  increase. 

When  the  amounts  of  wages  and 
salaries  are  expressed  as  proportion- 
ate parts  of  selling  expense,  some- 
what different  tendencies  are  ob- 
served. It  is  unnecessary  to  comment 
on  these  in  particular.  Those  who 
are  interested  may  consult  the  table 
as  to  amounts  and  directions  of 
change. 

It  is  worth-while,  however,  to  call 
attention  to  the  fact  that  location 
affects  the  size  of  the  amounts  of 
wages  and  salaries  when  measured  in 
terms  of  sales  and  of  selling  expense 
in  stores  having  the  same  amount  of 
expenditure  for  rent.  Only  a  single 
group  of  stores — those  which  spent 
$60  and  over  per  100  square  feet  of 
floor  space — is  available  for  such  a 


comparison.    The  details  are  found  in 
Table  188. 

D. — Summary. 

(1).  \Mien  stores  are  classified  by 
size,  the  amounts  of  wages 
and  salaries  in  terms  of  sales 
increase  in  some  and  decrease 
in  other  groups,  while,  in 
terms  of  sales  for  the  amount 
sold  per  square  foot  of  floor 
space,  they  consistently  de- 
crease as  the  rental  payments 
per  100  square  feet  of  floor 
space  increase. 

(2).  For  stores  of  a  given  size,  the 
amounts  of  wages  and  sal- 
aries in  terms  of  selling  ex- 
pense alone,  and  in  terms  of 
selling  expense  for  the 
amounts  sold  per  square  foot 
of  floor  space  decrease  as  the 
rent  per  square  foot  increases. 

(3).  For  stores  with  a  given 
amount  of  rent  per  100  square 
feet  of  floor  space,  the 
amounts  of  wages  and  sal- 
aries per  $100  of  total  net 
sales  are  higher,  while  per 
$100  of  total  net  sales,  per 
sales  per  square  foot  of  floor 
space,  they  are  lower  in  large 
than  in  small  cities. 

(4).  For  stores  with  a  given 
rental  per  100  square  feet  of 
floor  space,  the  amounts  of 
wages  and  salaries  per  $100 
of  selling  expense  alone  and 
per  $100  of  selling  expense 
for  the  amount  sold  per 
square  foot  of  floor  space  are 


271 


higher  in  small  than  in  large 
cities. 

(5).  When  stores  of  a  given  size, 
located  in  small  cities,  are 
classified  by  the  amounts  of 
rent  paid  per  100  square  feet 
of  floor  space,  wages  and  sal- 
aries measured  in  terms  of 
sales  per  stock  turnover,  and 
of  sales  for  the  amount  sold 
per  full-time  sales-person  in- 
crease, while  in  terms  of  sales 
for  the  amount  sold  per 
square  foot  of  floor  space  they 
decrease,  as  the  rental  pay- 
ments per  square  foot  of  floor 
space  increase. 

(6).  When  stores  of  a  given  size 
located  in  small  cities  are 
classified  by  amounts  of  rent 
paid  per  100  square  feet  of 
floor  space,  wages  and  salaries 
measured  in  terms  of  selling 
expense  for  the  amount  sold 
per  full-time  sales-person  in- 
crease and,  in  terms  of  selling 
expense  for  the  amount  sold 
per  square  foot  of  floor  space, 
they  decrease  as  the  rental 
payments  per  square  foot  of 
floor  space  increase.  The 
direction  of  change  is  uncer- 
tain for  wages  and  salaries 
per  $100  of  selling  expense 
per  stock  turnover. 

(2) — YEARLY  AMOUNTS  OP  WAGES  AND 
SALARIES  IN  RELATION  TO  INVEST- 
MENTS IN  FIXTURES  PER  $100  OP 
TOTAL  NET  SALES. 

The  order  of  the  discussion  of  the 
amounts  of  wages   and  salaries  per 


$100  of  total  net  sales  in  this  section 
closely  follows  that  for  the  amounts 
of  selling  expense  in  relation  to  sales, 
pages  141  to  164. 

A. — Yearly  Amounts  of  Wages  and 
Salaries  per  $100  of  Total  Net 
Sales  and  per  $100  of  Selling 
Expense,  1919,  1918,  and  1914. 

The  records  of  135  identical  stores 
in  each  of  the  years,  1919,  1918,  and 
1914,  are  available  for  the  study  of 
the  amounts  of  wages  and  salaries 
paid  to  salesmen  for  each  $100  of 
total  net  sales,  for  stores  classified 
according  to  the  amounts  invested  in 
fixtures  in  relation  to  sales.  The  de- 
tails are  contained  in  Table  189.  In 
1914  the  amount  was  $7.64,  in  1918, 
$7.48,  and  in  1919,  $7.11.  The  aver- 
age for  the  three  years  is  $7.34.  Both 
wages  and  salaries  increased  from 
year  to  year,  but  sales  increased  the 
faster.  Accordingly,  wages  and  sal- 
aries in  terms  of  sales  decreased. 

When  the  stores  are  classified  ac- 
cording to  the  amounts  of  fixture  in- 
vestment, there  is  a  general  tendency 
in  the  combined  and  in  the  individual 
years  for  the  amounts  of  wages  and 
salaries  to  increase  as  the  amounts  in- 
vested in  fixtures  increase,  both  being 
expressed  in  terms  of  sales.* 

In  Table  190  the  amounts  of  wages 
and  salaries  are  expressed  as  propor- 
tionate parts  of  total  selling  expense. 
For  the  stores  in  the  combined  years, 
the    average    amount    is    $67.28.     In 

*  In  1919  and  1918  the  average  amounts 
are  relatively  large  for  the  stores  having  less 
than  $2  ])or  $100  of  sales  invested  in  fixtures. 
The  explanation  for  these  variations  is 
found  in  Tables  194  and  195. 


272 


1914  the  average  amount  was  $65.83, 
in  1918,  $67.87,  and  in  1919,  $67.54. 
That  is,  there  was  an  increase  be- 
tween 1914  and  1918,  and  a  slight  de- 
crease between  1918  and  1919.  When 
the  stores  are  classified  by  the  amount 
invested  in  fixtures  per  $100  of  total 


net  sales,  there  is  a  general  tendency 
for  the  amounts  of  wages  and  salaries 
in  terms  of  selling  expense  to  de- 
crease as  fixture  investments  in  rela- 
tion to  sales  increase.  Inasmuch, 
however,  as  the  stores  from  year  to 
year    differ    in    size,    and    that    the 


TABLE  189 

TOTAL  NET  SALES,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  WAGES  AND  SALARIES  PER 

$100   OF   TOTAL   NET   SALES,    FOR    135   IDENTICAL   STORES    CLASSIFIED 

BY  AMOUNT  OF  FIXTURE  ACCOUNT  PER  $100  OF  TOTAL 

NET     SALES,     1919,     1918,     AND     1914 


Amount  of 
Plxturo  Aeoount 

per  $100  of 
Total  Hat  Sales 

number 

of 
Store- 
years 

Total 
net  Sales 

Total 
Wages  & 
Salaries 

Wages  and  Salaries  per  JlOO  of 
Total  Net  Sales 

Amount 
( 

Per  Cent. 

Graphic         Actual 
3  20  40  60  80  100  120 

Total 
(Average) 

405 

#40,576,908 

♦2,979,262 

*7.34 

100.0 

trader  |2 
»2  to  U 
»4  to  ^6 
#6  t   over 

72 
131 

86 
116 

8,020,930 
10,428,502 

7,841,253 
14,286,443 

596,212 

652,819 

496,580 

1,235,661 

7.45 
6.26 
6.33 
8.64 

Total 
(Ayerag« ) 

86.2 
117.7 

Total 
(Average ) 

135 

18,919,233 

1,545,703 

7.11 

1 
t 

96,9 

i 

• 

Dhder  (2 
»2  to  (4 
|4  to  ^ 
t6  k   over 

38 
51 
£S 
25 

5,228,703 
4,897,266 
5,175,841 
5.619,423 

374,193 
278,736 
216,764 
476,  OU 

7-16 
5.69 
6.83 
8.47 

97.5 
77.5 

1919 

1 

; 

: 

115.4 

i 

Total 
(Average) 

135 

13,360,146 

999,  983 

7.48 

101.9 

Dhder  (2 
|2  to  U 

^  to  |6 
te  &  over 

20 
45 
34 

56 

2,163,476 
5,706,654 
2,807,944 
4,682,071 

188,851 
242, 626 
158,878 
409,628 

8.73 
6.55 
5.66 
8.75 

1918 

89.2 

77.1 

119.2 

1 

Total 
(Average ) 

135 

8,297,630 

633,576 

7.64 

104.1 

Under  iz 
is   to  i4 

$4  to  $6 
(6  &  over 

14 

35 
29 
57 

628,751 

1,824,382 
1,859,448 
5,984,949 

33,168 
131,458 
120,938 
348,012 

5.28 
7.21 
6.50 
8.73 

71.9 

98.2 

88.6 

118.9 

1914 

1 

Average  $7.54 


273 


TABLE  190 

TOT.VL     SELLING    EXPENSE,     WAGES     AND     SALARIES,     AND     AMOUNT     OF     WAGES     Ain> 

SALARIES  PER  $100   OF  SELLING  EXPENSE,   FOR   135    IDENTICAL   STORES 

CLASSIFIED  BY  AMOUNT  OF  FIXTURE  ACCOUNT  PER  $100 

OF  TOTAL  NET  SALES,  1919,  1918,  AND  1914 


Amount  of 
Fixture-  Aocount 

per  flOO  of 
Total  Bet  Sales 

number 

of 
Store- 
years 

Total 
Selling 
Expense 

Total 
TTages  k 
Salaries 

Wages  and  Salaries  per  llOO  of 
Belling  Expense 

Yeore 

Amoxmt 

Per  Cent. 

Graphic                         Actual 
)     20      40      60     80   100    120 

Total 
(Average) 

40S 

(4,428,098 

$2,979,262 

#67.28 

100.0 

Under  iZ 
|2   to  i4 
|4  to  $6 

|6  &  over 

72 
131 

66 
116 

858,922 

985,648 

798,319 

1,811,209 

596,212 

652,819 

496, 580 

1,233,651 

71.58 
66.23 
62.20 
68. U 

106.4 
98.4 
92.4 

101.2 

(Average) 

i 

1 

i 

Total 
(Average ) 

155 

1,992,310 

1,345,703 

67.54 

100.4 

1 

Under  $2 
i2  to  f4 
U  to  $6 
$6  &  over 

38 
51 
25 
25 

555,232 
428,443 
326,474 
702,161 

374,193 
278,735 
216,764 
476,  OU 

69.91 
65.06 
66.40 
67.79 

103.9 
96.7 
98.7 

100.8 

1919 

: 

: 

Total 
(Average) 

135 

1,473,360 

■   999,983 

67.87 

100.9 

I 

Under  $2 
$2  to  $4 
$4  to  (6 
to  &  over 

20 
45 
34 

36 

244,748 
370,532 
867,521 
590,559 

188,851 
242,626 
158,878 
409,628 

77.16 
65.48 
59.39 
69.36 

114.7 
97.3 
88.3 

103.1 

1918 

; 

' 

Total 
(Average } 

135 

962,428 

635,576 

65.83 

97.6 

1 

Under  |2 
$2  to  $4 
|4  to  $6 
^6  &  over 

14 
35 
29 
57 

52,942 
186,673 
204,324 
518,489 

33,168 
131,458 
120,938 
548,012 

62.65 
70.42 
59.19 
67.12 

93.1 

104.7 

88.0 

99.6 

: :: 1 

1914 

[ 

amounts  both  of  wages  and  salaries 
and  of  selling  expense  are  influenced 
by  the  size  of  the  store,  the  absence 
of  a  marked  tendency  of  change  is  to 
be  expected.  The  relation  of  wages 
and  salaries  to  selling  expense  for 
stores  of  different  size  is  discussed 
later. 


Average  $67.28'/ 

B. — Yearly  Amounts  of  Wages  and 
Salaries  per  $100  of  Total  Net 
Sales  and  per  $100  of  Selling  Ex- 
pense, for  Stores  Classified  hy 
Size,  1919,  1918,  and  1914. 

The  records  of  two  groups  of  stores 
are  available  for  the  study  of  wages 


274 


and  salaries  for  stores  classified  by 
size  and  by  investment  in  fixtures  per 
$100  of  total  net  sales.  The  first 
group — 303  stores — applies  alone  to 
1919.  For  1919,  1918,  and  1914,  the 
records  of  135  identical  stores  are 
used. 

In  1919,  based  upon  303  stores,  it 
cost  $6.54  in  wages  and  salaries  to 
sell  $100  worth  of  goods.  As  the 
stores  increase  in  size,  the  amounts 
increase,  the  minimum — $4.48 — char- 
acterizing the  stores  with  sales  under 
$40,000  and  the  maximum— $7.30— 
applying  to  the  stores  with  sales  of 
$180,000  and  over.  When  the  stores 
are  classified  by  size,  and  further  by 
the  amounts  of  fixture  investments 
per  $100  of  total  net  sales,  the 
amounts  of  wages  and  salaries  per 
$100  of  total  net  sales  increase  as  the 
fixture  investments,  similarly  meas- 
ured, increase.  To  this  general  rule 
there  are  some  exceptions,  but  they 
are  neither  important  nor  numerous. 

The  purpose  of  classifying  the 
stores  as  in  Table  191  is  to  secure,  if 
possible,  an  answer  to  the  following 
question:  Are  wages  and  salaries  in 
terms  of  sales  relatively  high  in  stores 
which  have  relatively  large  amounts 
invested  in  fixtures  in  relation  to 
sales  ?  The  results  of  the  analysis  make 
it  possible,  with  certain  reservations, 
to  answer  the  question  in  the  affirma- 
tive. The  stores  as  grouped  are  not 
precisely  identical  in  size,  although  the 
variations,  on  the  average,  within  the 
groups  are  not  large.  Obviously, 
there  are  many  conditions  which  de- 
termine the  amounts  of  wages  and 
salaries.     It  is  the   purpose  of  this 


analysis  to  show  only  the  association 
between  high  wages  and  salaries  and 
high  fixture  investments  when  both 
are  measured  in  sales. 

In  Table  192  the  amounts  of  total 
net  sales  secured  for  each  $100  of 
wages  and  salaries  paid,  have  been 
calculated  for  the  303  stores  as  in 
Table  191.  As  the  stores  increase  in 
size,  relatively  smaller  amounts  of 
sales  are  secured  for  each  $100  of 
wages  and  salaries.  For  each  group 
of  stores,  when  classified  by  size,  and 
for  the  total,  there  is  a  general  ten- 
dency for  the  amounts  of  sales  secured 
for  each  $100  of  wages  and  salaries 
paid  to  decrease  as  the  amounts  in- 
vested in  fixtures  in  relation  to  sales 
increase.  In  the  total-section  of  the 
table,  the  decrease  is  more  apparent 
than  real,  depending  as  it  does  upon 
the  proportion  in  which  stores  of  dif- 
ferent size  are  included.  It  is  the 
large  stores  which  have  relatively 
large  fixture  investments  in  relation 
to  sales  and  it  is  precisely  those  which 
have  relatively  low  amounts  of  sales 
in  terms  of  wages  and  salaries  paid. 
Accordingly,  the  effect  of  grouping 
all  the  stores  together  as  in  the  total- 
section  is  to  emphasize  the  inverse  re- 
lation between  sales  secured  for  a 
given  wage  payment  and  the  amounts 
invested  in  fixtures.  A  more  suitable 
comparison  is  found  in  the  details  for 
stores  of  essentially  the  same  size. 
For  these  stores,  the  tendency  for  the 
amounts  of  sales  per  $100  of  wages 
and  salaries  paid  to  decrease  is  not 
uniform,  although  it  is  generally  ap- 
parent. Irrespective  of  any  tendency 
which    the    amounts     may    describe, 


275 


TABLE  191 

TOTAL  NET  SALES,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  WAGES  AND  SALARIES  PER 

$100  OF  TOTAL  NET  SALES,  FOR  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT 

OF    FIXTURE    ACCOUNT    PER    $100    OF    TOTAL    NET    SALES,    1919 


ikaoont  of 
Pljcture  Account 

per  llOO  of 
Total  Uet  Bales 

Hnnber 

of 
Stores 

Total 
Ret  Sales 

Total 

V7age8  t 
Salaries 

Wages  and  Salaries  per  #100  of 
Total  Net  Sales 

Olasilflad 

Total 
Hat  Sales 
(In  OOO'a) 

Amount 
C 

Per  Cent. 

Graphic           ,  ^  . 
Aetnal 

20  40  60  80  100  120  140 

Total 
(ATerage) 

SOS 

♦36,195,718 

#2,367,501 

#6.54 

1 

Under  iz 
$2  to  $4 
U   to  |6 
|6  fc  over 

89 
120 
46 
48 

10,793,092 
11,972,443 
4,736,899 
8,691,184 

697,444 
673,257 
318,639 
678,161 

6.46 
5.62 
6.73 
7.80 

98.8 
65.9 
102.9 
U9.5 

Total 
(Average ) 



Iota! 
(Average) 

45 

1,599,886 

62,748 

4.48 

68.5 

Cnder  $40 

Under  #2 
*2  to  #4 
$4  to  $6 

|6  k   over 

10 

16 

9 

10 

323,183 
488,941 
283,784 
303,978 

9,608 
20,320 
16,979 
15,841 

2.97 

4.16 
5.98 
5.21 

45.4 

63.6 
91.4 
79.7 

• 

Total 
(Average) 

lis 

6,500,336 

330,557 

5.09 

77.8 

^  to  $80 

Under  (2 
*2  to  $4 

»4  tots 
$6  &  over 

28 

57 
17 
U 

1,609,446 

3,371,123 

981, 374 

538,393 

68,619 

165,727 

69,996 

26,215 

4.26 
4.92 
7.13 
4.87 

6S.1 

75.8 
109.0 
74.5 

Total 
(Average ) 

102 

11,966,362 

784,290 

6.54 

100. 0 

Under  $2 
|2  to  $4 
$4  to  $6 
$6  &  over 

S6 

se 

IS 
15 

4,187,940 
4,268,220 
1,658,547 
1,871,655 

278,765 
247,891 
123,810 
133,824 

6.66 

s.ei 

7.46 
7.15 

101. a 

ee.a 

114.1 
109.  S 

|80  to  llSO 

1 

1 

^1 

Total 
(Average) 

43 

16,307,134 

1,189,906 

7.50 

111.6 

Under  t2 
|2  to  U 

t4  to  #6 

|6  fc  over 

15 
11 
5 
12 

4,672,523 
3,844,159 
1,813,294 
5,977,158 

340,452 
239,519 
107,864 
502,281 

7.29 
6.23 
6.95 
8.40 

' 

111.6 
96.3 
91.0 

128.« 

|180  &  OTOr 

' 

' 

Avarago  |6.64 


276 


they  are  significant  in  themselves  as 
standards  obtaining  in  1919  for  stores 
of  different  size  having  different 
amounts  of  fixtures  in  relation  to 
their  sales. 

For  the  years  1919,  1918,  and  1914, 
combined  and  individually,  the  rec- 
ords of  135  stores  are  available  for 


the  same  type  of  analysis  as  that 
made  in  Table  191.  For  the  stores 
for  the  combined  years,  as  shown  in 
Table  193,  it  cost  in  wages  and  sal- 
aries $7.34  to  sell  $100  worth  of  goods. 
As  the  stores  increase  in  size,  the  ex- 
pense for  this  purpose,  measured  in 
sales,  increases  from  $5.90  for  stores 


TABLE  192 

WAGES    AND    SALARIES,    TOTAL    NET    SALES,    AND   AMOUNT   OF    TOTAL    NET    SALES   PER 

$100    OF    W^AGES    AND    SALARIES,    FOR    STORES    CLASSIFIED    BY    SIZE    AND    BY 

AMOUNT   OF  FIXTURE  ACCOUNT  PER  $100   OP   TOTAL   NET   SALES,    1919 


iaoont  of 
Flztura  Aecmmt 

p«r  llOO  of 
total  Bet  Bales 

Snaber 

•f 
Store* 

TotU 
Wagei  k 
Salaries 

Total 
Bet  Salea 

Total  Het  Salea  per  $100  of  Hages  and  Salaries 

ClMilfled 
»»t»l 

let  Bale* 

AaoviBt 

Per  Cent, 

(IB  000'*) 

Graphic                                              ^  ^    , 
Actual 

0     20     40     60     80   100   120  140  160  ISO  200  220 

Total 
(Average) 

303 

t2, 367, 501 

$56,193,718 

|l,529 

100.0 

Under  |2 
♦S  to  ♦« 
«4  to  «6 

#€  &  over 

e» 

120 
4€ 
48 

6S7,444 
673,257 
S18,63S 
676,161 

10,793,092 
U,  972,  443 
4,736,999 
8,691,184 

1,548 
1,778 
1,487 
1,282 

- 

total 
(ATerage) 

Total 
(Average ) 

45 

62,748 

1,399,886 

2,231 

Onder  iZ 
♦«   to  »4 

t*  to  |6 

t6  4  over 

10 
16 
9 
10 

8,608 
80,520 
16,979 
15,841 

363,183 
488,941 
283,784 
303,978 

3,364 
2,406 
1,671 
1,919 

Osder  Uo 

157.4 

12&.S 

Total 
(Avars Re) 

lis 

330.567 

6,500,336 

1,966 

Under  $2 

HtoU 

»4  to»6 
t6  i  over 

28 
57 

n 

11 

68,619 
165,727 
69,996 
26,215 

1,609,446 

3,371,123 

981,374 

538,393 

2,345 

2,034 
1,402 
2,054 

>iO  to  too 

153.4 
133.0 

Total 
(Average) 

102 

784,290 

11,986,362 

' 

Under  iZ 
»2  to  i4 
U  to  »6 

$6  k  over 

36 
36 
15 

IS 

278,765 
247,891 
123,810 
133,624 

4.187,940 
4,268,220 
1,558,547 
1,871,655 

; 

|80  to  «150 

1,502 

112.6 

' 

91.5 

1,399 

; 

Total 
(Average ) 

43 

1,189,906 

16,307,134 

69.6 

' 

; 

Under  iZ 

tz  to  U 

i*  to  J6 
|6  4  over 

IS 
11 
5 
12 

340,452 

239,319 

107,854 

1    602,261 

4,672,525 
3,844,159 
1,813,294 
5,977,158 

89.7 

105.0 
109.9 

llSO  k  over 

' 

' 

1.681 

1,1^ 

Average  $1,52» 

277 


TABLE  193 

TOTAL  NET  SALES,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  VTAGES  AND  SALARIES  PER 

$100  OF  TOTAL  NET  SALES,  FOR  135  IDENTICAL  STORES  CLASSIFIED  BY  SIZE 

AND   BY  AMOUNT  OF   FIXTURE   ACCOUNT   PER  $100   OF   TOTAL 

NET    SALES,    1919,    1918,    AND    1914,    COMBINED 


Amount  of 
Fixture  Account 

per  $100  of 
Total  Nat  Sales 

Hunbar 

of 
Store- 
ys ars 

Total 
Hat  Sales 

Total 
Wages  8c 
Salaries 

Wages  and  Salaries  per  $100  of 
Total  Nat  Sales 

Classified 
Total 

Amount 

( 

Par  Cent. 

(la  OOO'e) 

Graphic           Actual 
)  20   40  60   80  100  120  140 

Total 
(Average ) 

405 

$40,576,903 

$2,979,262 

$7.34 

] 

100.0 

Under  |2 
$2  to  $4 
$4  to  $6 
$6  tt   over 

72 
131 

86 
U6 

8,020,930 
10,428,302 

7,841,233 
14,286,443 

596,212 

652,319 

496,530 

1,233,651 

7.43 

6.26 
6.33 
8.64 

101.2 
35.3 
86.2 

117.7 

Total 

(Avernga) 

' 

Total 
(Average ) 

112 

3,119,809 

184,127 

5.90 

80.4 

Under  140 

Under  $2 
$2  to  $4 
ft  to  J6 
|6  &  over 

14 

28 
27 
43 

403,857 

800,159 

723,519 

1,192,274 

18,437 
43,360 
39,748 
82,582 

4.57 
5.42 
5.49 
6.93 

62.3 
73.8 
74.8 
94.4 

j 

Total 
(Average) 

153 

8,672,180 

569,961 

6.57 

89.5 

|40  to  |80 

ttader  $2 
|2  to  *4 
%i   to  $6 

♦6  8:  over 

20 
63 
31 

39 

1,107,291 
3,755,597 
1,653,451 
2,155,341 

58,345 
214,550 
105,559 
191,407 

5.27 
5.71 
6.39 
8.83 

71.8 
77.8 
87.1 
121.0 

; 

; 

Total 
(Average) 

93 

11,411,444 

851,730 

7.46 

101.6 

Under  f 2 
»2  to  *4 
|4  to  \& 

|6  8:  ovar 

27 
33 
19 

19 

3,021,911 
3,838,758 
2,392,924 
2,157,851 

211,978 
280,742 
175,671 
132,339 

7.01 
7.31 
7.33 
3.45 

95.5 

99.6 

100.5 

U5.1 

|80  to  $180 

1 

■ 

i 

Total 
(Average ) 

42 

17,373,475 

1,373,394 

7.91 

107.8 

Under  $2 
»2  to  %A, 
|4  to  $6 
$6  8c  over 

U 

7 

g 

IS 

3,487,871 
2,033,733 
3,071,539 
8,780,477 

307,452 
114,167 
174, 502 
777,273 

8.31 
5.61 
5.68 
3.35 

120.0 
76.4 
77.4 

120.6 

loao  &  over 

1 

„ 

Average  $7.34 


278 


with  sales  under  $40,000,  to  $7.91  for 
stores  with  sales  of  $180,000  and  over. 
Moreover,  when  all  the  stores  are  com- 
bined, irrespective  of  size,  for  the 
three  years,  the  amounts  tend  gener- 


ally to  increase  as  the  amounts  in- 
vested in  fixtures  per  $100  of  total  net 
sales  increase.  The  same  general  ten- 
dency, with  certain  exceptions,  also 
holds  for  the  stores  classified  by  size. 


TABLE  194 

TOTAL  NET  SALES,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  WAGES  AND  SALARIES  PER 

$100    OF    TOTAL    NET    SALES,    FOR    135    STORES    CLASSIFIED    BY    SIZE    AND    BY 

AMOUNT   OF   FIXTURE  ACCOUNT   PER  $100   OF   TOTAL   NET   SALES,   1919 


Claaelfled 

Amount  of 
PlztTU-e  Account 

per  #100  of 
Total  Get  Sales 

BoBber 

of 
Store e 

Total 
Het  Sales 

Total 
Vages  & 
Salaries 

Wages  and  Salaries  per  $100  of 
Total  Net  Sales 

Total 
Het  Sales 
(in  COO'a) 

Anoont 

Per  Cent. 

QrapMo                         Actual 
5     20     40     60     80  100  120   140 

Total 
(Average) 

135 

♦18,919,233 

tl,345,703 

$7.11 

^^^^^^^ 

ttader  (2 
«2  to  »4 
♦4  to  #6 

♦e  at  over 

58 
51 
23 
25 

5,228,703 
4,897,266 
3,173,841 
5,619,423 

374,193 
278,735 
216,764 
476,011 

7.16 
5.69 
6.83 
8.47 

100.7 

Total 
(Average) 

1 

96.1 
119.1 

Total 
(Average) 

12 

374,325 

16,031 

4.28 

^^^^^ 

60.2 

Vb&w  Uo 

Under  (2 
t2  to  |4 
»4  to  $6 

|6  k  over 

2 

4 
S 
3 

62,964 

129,541 

92,703 

89,117 

1,300 
4,969 
6,389 
3,373 

2.06 
3.84 
6.89 
3.78 

89.0 
S4.0 
96.9 
53.3 

■^■^■i 

Total 
(Average ) 

52 

2,967,756 

167,315 

5.64 

79.5 

J 

|40  to  (80 

Under  $2 
«2  to  $4 

ii  to  $6 
|6  t  over 

e 

28 

a 

8 

470,684 

1,658,927 

431,  7:16 

406,419 

22,832 
81,234 
33,427 
29,822 

4.85 
4.90 
7.74 
7.34 

68.S 

68.9 

108.9 

103.2 

Total 
(Average) 

4S 

5,603,210 

413,967 

7.39 

103.9 

Under  $2 
(2  to  (4 
(4  to  (6 

20 

15 

7 

2,217,649 

1,759,679 

836, 118 

789,764 

160,698 

117,275 

69,094 

66,920 

7.25 
6.66 
8.26 
8.47 

102.0 
93.7 

115.2 
119.1 

#80  to  |180 

' 

Total 
(Average) 

23 

9,973,942 

748,370 

7.50 

105.5 

Under  |2 
$2  to  (4 

$4  to  $6 
♦6  t  over 

8 
4 
5 
6 

2,477,406 
1,349,119 
1,813,294 
4,334,123 

189,363 

75,257 

107,854 

375,896 

7.64 
5.58 
5.95 
8.67 

107.5 
78.5 
88.7 

121.9 

(180  &  ever 

; 

; 

Average  $7.11 


279 


It  may  be  of  interest  briefly  to  call 
attention  to  this  tendency  for  the 
stores  which  sold  between  $80,000  and 
$180,000  worth  of  goods  in  any  one 
of  these  years.  The  average  amount 
for  the  entire  group  is  $7.46.     For 


the  stores  with  fixture  investment 
less  than  $2  per  $100  of  total  net 
sales,  it  is  $7.01  and  for  those  with 
a  fixture  investment  per  $100  of  total 
net  sales  of  $6  or  more,  it  is  $8,45. 
Between    these    limits,    the    average 


TABLE  195 

TOTAL  NET  SALES,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  WAGES  AND  SALARIES  PER 

$100    OF    TOT.VL    NET    SALES,    FOR    135    STORES    CLASSIFIED    BY    SIZE    AND    BY 

AMOUNT   OF  FIXTURE   ACCOUNT  PER   $100   OF   TOTAL  NET   SALES,    1918 


Classified 

Total 
Bet  Sales 
(In  oOO'b) 


Amount  of 
Fixture  Aceonnt 

per  ilQO   of 
Total  Bet  Sales 


Total 
Sages  k 


nages  and  Salaries  -per  llOO  of  Total  Bet  Bales 


0     20      40      60     80  100   120   140   160 


Total 
(Jlveracfl ) 


Under.  {40 


Uo  to  teo 


^0  to  $180 


tlBO  &  over 


Total 
(Average) 


$19,360,146 


$998,985 


$7.48 


Dnder  $Z 
$2  to  $4 

$4  to  $6 
$6  b  oTer 


Tot»l 
(Average) 


2,165,476 
3,706,654 
2,807,944 
4,662,071 

1,117,468 


188,851 
242,626 
158,876 
409,628 

64,726 


Dnder  $2 
$2  to  $4 
$4  to  $6 
$6  h  over 


124,966 
869,792 
297,192 
425,618 


7,595 
12,531 
14,750 
29,850 


Total 
(Average ) 


3,239,647 


211,586 


Under  $2 
$2  to  $4 

$4  to  $6 

$6  8c  over 


434,936 

1,335,132 

779,116 

690,363 


24,785 
81,486 
45,126 
60,187 


Total 
(Average) 


3,298,407 


242,070 


Under  $2 
$2  to  $4 
$4  to  $6 

$6  &  over 


£93,109 

1,417,061 

654,591 

633,646 


38,382 

109, 697 
41,854 
52,137 


Total 
(Average) 


5,704,723 


481,601 


Under  $2 
|2  to  $4 
$4  to  $6 
$6  k   over 


1,010,465 

684,669 

1,077,045 

2,932,544 


118,089 
38,910 
57,148 

267,454 


8,73 
6.55 
5.66 
8.76 

5.79 


6.08 
4.64 
4.96 
7.01 


6.69 


5.70 
6.10 
5.79 
8.72 


7.34 


6.47 

7.74 
6.39 
8.23 


8.44 


11.69 
5.68 
5.31 
9.12 


100.0 

116.7 
87.8 
75.7 

117.0 

77.^ 

81.3 
62.0 
66.3 
93.7 


87.9 

76.2 
81.6 
77,4 
116.6 


98,1 

86.5 
103.5 

85,4 
UO.O 


112.9 

156,5 
75.9 
71. 

121.9 


Average  $7.48 


280 


TABLE  196 

TOTAL  NET  SALES,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  WAGES  AND  SALARIES  PER 

$100    OF    TOTAL    NET    SALES,    FOR    135    STORES    CLASSIFIED    BY    SIZE    AND    BY 

AMOUNT   OF  FIXTURE  ACCOUNT   PER  $100   OF   TOTAL  NET   SALES,   1914 


taionnt  of 
Fixture  Acconnt 

per  tlOO  of 
Total  Bet  Sales 

Htsaber 

of 
Stores 

total 
Net  Sales 

Total 
Wages  fc 
Salaries 

Wages  and  Salaries  per  |100  of 
tstal  H«t  Sales 

ClABsiried 
Total 

tMoxmt 

fer  Cent. 

Set  Sales 
(in  OOO'a) 

Oraphle                        Aetaal 
3     20     40     60     80   100  120  140 

Total 
(Average ) 

135 

t8, 297, 530 

♦635,576 

♦7.64 

100.0 

Total 
(Average ) 

Under  $2 
»2  to  *4 
(4  to  $6 
$6  &  over 

14 
35 
29 
57 

628,751 
1,824,382 
1,859,448 
3,984,949 

33,168 
131,458 
120,938 
348,012 

5.28 
7.21 
6.50 
8.73 

68.1 

94.4 
85.1 
114.3 

Total 
(Average) 

63 

1,628,016 

105,370 

6.55 

83.1 

Under  (40 

Thider  (2 
»2  to  (4 
(4  to  |6 
|6  &  over 

8 
16 
13 
S6 

215,927 
400,826 
333,624 
677,638 

9,542 
25,860 
18,608 
49,358 

4.42 
6.45 
5.58 
7.28 

S7.9 
84.4 
73.0 
96.3 

total 

45 

2,464,877 

191,060 

7.75 

101.4 

f40  to  ^0 

Oador  (2 
»2  to  «4 
|4  to  (6 
$6  &  over 

4 
13 

8 
20 

201,671 

761,538 

442,609 

1,059,058 

10,728 

51,828 

27,106 

101,398 

5.32 
6.81 
6.12 
9.57 

69.6 

89.1 

80.1 

125,5 

Total 
(Average) 

22 

2,509,827 

195,723 

7.80 

102.1 

Itader  t2 
♦2  to  U 
«4  to»6 
|6  4  over 

2 
6 

7 
7 

2U,153 
662,018 
902,216 
734,441 

12,898 
53,770 
65,723 
63,332 

6.U 
8.12 
7.28 
8.62 

80.0 
106.3 

95.3 
112.8 

ISO  to  |180 

Total 
(Average) 

S 

1,694,810 

143,423 

8.46 

110,7 

|180  &  over 

Under  (2 
♦2  to  »4 
|4  to  |6 
t6  at  over 

1 
4 

131,000 
1,513,810 

9,500 
133,923 

5.25 
8.85 

68.7 
115.8 

Average  17.64 


281 


amounts  increase  as  the  fixture  in- 
vestments increase.  It  should  be  re- 
membered in  this  connection,  how- 
ever, that  identical  stores  from  year  to 
year  are  not  included.  The  sales  of 
all  the  stores  in  each  year,  however, 
fall  within  the  limits  set  up  for  this 
group, 

A  more  satisfactory  comparison  of 
the  amounts  of  wages  and  salaries 
per  $100  of  total  net  sales  can  be 
made  from  year  to  year  for  stores  of 
the  same  size,  but  with  different  fix- 
ture investments  in  relation  to  sales. 
Comparisons  of  this  character  can  be 
made  by  consulting  Tables  194  to  196, 
inclusive,  which  refer  respectively  to 
the  years  1919,  1918,  and  1914.  It 
will  be  remembered  that,  in  the 
analysis  of  Table  191,  the  records  of 
303  stores  for  1919  were  used.  Table 
194  contains  the  records  of  135  stores 
for  the  same  year,  similarly  classified. 
Both  groups  of  stores  on  the  whole 
tend  to  show  that  the  amounts  of 
wages  and  salaries  per  $100  of  total 
net  sales  increase  as  the  amounts  of 
fixtures  per  $100  of  total  net  sales 
increase.  It  is  true  that  the  stores  in 
the  two  tables  are  not  mutually  ex- 
clusive. All  of  the  135  stores  in  the 
total-section  of  Table  194  are  included 
in  the  corresponding  part  of  Table 
191  for  303  stores.  The  reason  for 
selecting  two  groups  of  stores  was  to 
make  use  of  the  widest  possible  ex- 
perience of  stores  for  a  single  year. 

It  is  shown  in  Table  189  that  the 
amounts  of  w^ages  and  salaries  per 
$100  of  total  net  sales  decreased  from 
1914  to  1918,  and  from  1918  to  1919. 
Such  a  condition  also  holds  from  year 


to  year  when  these  stores  are  clas- 
sified by  size.  ]\Ioreover,  from  year 
to  year,  on  the  whole,  the  amounts 
seem  to  decrease  for  stores  of  the  same 
size  with  given  amounts  of  fixture 
investment  per  $100  of  total  net  sales. 
It  is  unnecessary  to  point  out  the  ex- 
tent of  this  agreement  or  the  in- 
stances in  which  it  does  not  hold,  in- 
asmuch as  the  actual  amounts  are 
shown  in  the  tables  in  detail  and  are 
available  to  the  reader  for  such  a 
comparison. 

In  the  discussion  of  the  amounts  of 
selling  expense  per  $100  of  total  net 
sales,  the  point  was  made  that  fixture 
investments  tend  on  the  whole  to  be 
large  in  terms  of  sales  where  selling 
expenses,  in  terms  of  sales,  are  large. 
A  series  of  tables,  93  to  96,  inclusive, 
was  presented  to  show  this  tendency. 
It  is  thought  to  be  unnecessary,  in 
view  of  the  fact  that  approximately 
66  per  cent,  of  selling  expense  is 
chargeable  to  wages  and  salaries,  to 
show  similar  tables  giving  the 
amounts  of  fixtures  per  $100  of  total 
net  sales  in  stores  with  different 
amounts  of  wages  and  salaries  in  re- 
lation to  sales.  The  influences  which 
determine  the  relation  of  fixtures  to 
sales  for  stores  with  different  amounts 
of  selling  expense,  similarly  measured, 
would  also  operate  to  determine  the 
amount  of  fixtures  when  the  stores 
are  classified  according  to  wages  and 
salaries  in  relation  to  sales. 

The  amounts  of  wages  and  salaries 
for  stores  of  different  sizes  and  fix- 
ture investments  per  $100  of  total 
net  sales,  may  also  be  expressed  as 
proportionate    parts   of    selling    ex* 


282 


TABLE  197 

TOTAL  SELLING  EXPENSE,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  WAGES  AND  SALARIES 

PER    $100    OF    SELLING    EXPENSE,    FOR    STORES    CLASSIFIED    BY    SIZE    AND    BY 

AMOUNT  OF  FIXTURE   ACCOUNT   PER  $100  OF   TOTAL   NET   SALES,    1919 


Amount  of 
Fixture  Account 

per  $100  of 
Total  net  Sales 

Nuiuter 

of 
Storee 

Total 
Selling 
Expense 

Total 
Wages  !c 
Salaries 

Wages  and  Salaries  per  $100  of 
Selling  Expense 

Claeelfled 

Total 
Net  Sales 
(In  000*8) 

Amount 

Per  Cent. 

Graphic          Actual 
0  20  40  60  60  100  120  140 

Total 
(Average) 

303 

$3,595,401 

$2,367,501 

$65.65 

100.0 

Under  $2 
$2  to  $4 
$4  to  $6 

$6  i  over 

89 
120 
46 
48 

984,379 
1,083,537 

469,533 
1,057,952 

697,444 
673,257 
318,639 
678,161 

70.85 
62.14 
67.86 
64.10 

1 

107.6 
94.4 

103.1 
97.3 

Total 
(Average ) 

1 

; 

I 

Total 
(Average ) 

45 

90,453 

62,748 

69.57 

105.3 

; 

Under  $2 
$2  to  $4 

$4  to  |6 
$6  St  over 

10 

16 

9 

10 

14,975 
30,114 
21,226 
24,158 

9,608 
20,320 
16,979 
15,841 

64.16 
67.48 
79.99 
65.63 

Qcder  |40 

! 

102.5 

, 

Total 
(Average) 

115 

463,566 

550,557 

71.31 

108.5 

Under  $2 
$2  to  $4 

$4  to  $6 

$6  8c  over 

28 
57 
17 

n 

94,543 

240,121 

92,359 

36,543 

68,619 
166,727 
69,996 
26,215 

72.58 
69.02 
75.79 
71.74 

110.2 
104.8 
115.1 
108.9 

$40  to  $eo 

^^^^; 

^y 

Total 
(Average ) 

102 

1,174,364 

784,290 

66.78 

101.4 

Under  $2 
$2  to  $4 
$4  to  $6 

$6  !:  over 

36 
36 
15 
15 

401,886 
388,373 
176,478 
207, 627 

278,765 
247,891 
123,810 
133,824 

69.36 
63.83 
70.16 
64.45 

105.3 

$80  to  $180 

106.5 
97.9 

' 

1 

Total 
(Average) 

43 

1,867,018 

1,189,906 

63.73 

96.8 

Under  $2 
$2  to  $4 
$4  to  $6 
$6  !t  over 

15 
11 
5 

12 

472,975 
424,929 
179,470 
789,644 

340,452 
239,319 
107,854 
502,281 

71.98 
56.32 

109.3 
05.5 
91.5 

$180  &  over 

: 

: 

Average  $65.65 


283 


TABLE  198 

TOTAL  SELLING  EXPENSE,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  WAGES  AND  SALARIES 

PER  $100  OF  SELLING  EXPENSE,  FOR  135  IDENTICAL  STORES  CLASSIFIED  BY 

SIZE  AND  BY  AMOUNT  OF  FIXTURE  ACCOUNT  PER  $100  OF  TOTAL 

NET    SALES,    1919,    1918,    AND    1914,    COMBINED 


Amormt  of 
Fixture  Aocount 

per  $100  of 
Total  Hot  Sales 

Bumber 

of 
Store- 
years 

Total 
Selling 
Bzponse 

Total 
Wages  & 
Salaries 

Wages  and  Salaries  p«r  #100 
of  Selling  Expense 

Total 
■•t  Biaos 
(In  000'«) 

Anotmt 

fer  Cent. 

Oraphlo          Actual 
)   20   40   60   80  100  120 

Total 
(Average) 

405 

14,428,098 

♦2,979,262 

♦87.28 

lOO.O 

1 

Xhider  $2 
»2  to  »4 
f4  to  ^6 
#6  Je  over 

72 

131 

86 

116 

832,922 

985,648 

796,319 

1,811,209 

596,212 

652,819 

496,580 

1,853,661 

71.58 
66.25 
62.20 
68.U 

106.4 
93.4 
92.4 

101.8 

Total 
(ATeraga ) 

! 

: 

1 

Total 
(Average) 

112 

263,714 

184,127 

69.82 

103.3 

Dtader  |2 
#2  to  U 
U   to  t6 
♦6  k  over 

14 

28 
87 
43 

85,981 

64,602 

58,106 

115,086 

18,437 

43,360 
39,748 
82,582 

71.13 
67.12 
68.41 
71.76 

105.7 

99.8 

101.7 

106.7 

Older  #40 

; 

^^^^1 

; 

; 

Total 
(Average) 

153 

806,361 

569,961 

70.68 

105.1 

IJnder  |2 
f>2  to  «4 
*4  to  *6 
#6  k  over 

20 
63 
51 
59 

78,674 
314,078 
158,148 
255,461 

58,345 
814,550 
105,659 
191,407 

74.16 
68.31 
66.81 
74.95 

110.2 

101.5 

99.3 

111.4 

|40  to  |80 

; 

; 

Tbtal 
(Average) 

96 

1,253,879 

861,780 

67.93 

101.0 

uader  #2 
|2  to  |4 
»4  to  le 

t6  II   over 

27 
53 
19 
19 

307,174 
405,623 
274,227 
266,855 

211,978 
280,742 
176,671 
182,369 

69.01 
69.21 
64.43 
68.35 

102.6 

102.9 

95.8 

101.6 

|80  to  «180 

1 

; 

Total 
(Average) 

42 

£,104,144 

1,373,394 

65.87 

97.0 

1 

Va&or  #2 
♦2  to  U 

U  to  to 

#6  &  over 

U 
7 
9 

15 

481,153 

201,345 

307,839 

1,173,807 

307,452 
114,167 
174,502 
777,873 

73.00 
56.70 
66.69 
66.22 

103.5 
84.9 
84.3 
98.4 

tlao  h   over 

1 

; 

^^^^^^' 

Average  t67.8d 


284 


pense.  This  is  done  for  1919  in  Table 
197  and  for  the  years  1919,  1918,  and 
1914,  combined  and  individually,  in 
Tables  198  to  201,  inclusive. 

In  1919,  for  the  303  stores  the 
records  of  which  are  available,  wages 
and  salaries  constituted  $65.85  out  of 
every  $100  of  selling  expense.  As  the 
stores  increase  in  size,  however,  this 
amount  becomes  a  relatively  smaller 
proportion.  The  amount  for  stores 
having  sales  of  $180,000  and  over  is 
$63.73,  or  96.8  per  cent,  of  the  aver- 
age. Within  each  group  of  stores, 
when  classified  by  size,  there  seems  to 
be  no  definite  tendency  for  the 
amounts  of  wages  and  salaries  per 
$100  of  selling  expense  to  increase  or 
decrease  with  the  amounts  invested 
in  fixtures  per  $100  of  total  net  sales. 
Moreover,  the  variations  in  the  actual 
amounts  from  store-group  to  store- 
group  in  stores  of  the  same  size  are 
not  large. 

Table  198  shows  the  amounts  of 
wages  and  salaries  per  $100  of  sell- 
ing expense  for  135  stores  for  the 
combined  years  1919,  1918,  and  1914. 
For  these  years,  wages  and  salaries 
constitute  $67.28  of  each  $100  of  sell- 
ing expense.  Moreover,  for  the  com- 
bined years,  the  amounts  generally 
become  smaller  proportionate  parts 
of  selling  expense  as  the  stores  in- 
crease in  size.  In  other  words,  what 
is  true  for  1919  alone  is  also  true  for 
a  number  of  identical  stores  for  the 
three  years  combined.  When  the 
stores  for  the  combined  years  are 
classified  by  size,  there  seems  to  be 
no  clear  tendency  for  the  amounts  of 
wages  and  salaries  per  $100  of  sell- 


ing expense,  in  stores  of  the  same 
size,  either  to  increase  or  to  decrease 
regularly  as  the  amounts  invested  in 
fixtures  per  $100  of  total  net  sales  in- 
crease. Here,  again,  the  experience 
for  a  limited  number  of  stores  for  the 
three  years  combined  is  similar  to  that 
for  1919  when  a  larger  store  experi- 
ence is  used. 

In  Tables  199  to  201,  inclusive,  the 
amounts  of  wages  and  salaries  per 
$100  of  selling  expense  are  shown  for 
the  years  1919,  1918,  and  1914,  re- 
spectively, for  the  stores  classified  by 
size  and  by  their  fijcture  investments. 
Attention  was  called  in  Table  185  to 
the  fact  that  the  amounts  of  wages 
and  salaries  per  $100  of  selling  ex- 
pense   increased    between    1914    and 

1918,  and  decreased  between  1918  and 

1919.  The  tendency  from  year  to 
year  for  stores  of  the  same  size,  as 
shown  in  these  tables,  is  uncertain. 
The  actual  amounts  are  contained  in 
the  table  and  anyone  who  is  inter- 
ested may  compare  them  for  himself. 

C. — Yearly  Amounts^  of  Wages  and 
Salaries  per  $100  of  Total  Net 
Sales,  for  Stores  Classified  hy 
Amounts  of  Inventory  per  $100 
of  Total  Net  Sales,  1919. 

In  the  foregoing  discussion,  the 
bases  of  classification  have  been  years, 
size  of  store,  and  fixture  investment 
per  $100  of  total  net  sales.  In  Table 
202,  an  additional  basis  of  classifica- 
tion is  used  for  a  group  of  282  stores 
for  1919.  No  cognizance,  however,  is 
taken  of  store  size.  The  stores  are 
classified  according  to  the  amounts 
of  inventories  which  they  had  at  the 


285 


TABLE  199 

TOTAL  SELLING  EXPENSE,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  WAGES  AND  SALARIES 

PER   $100   OF   SELLING   EXPENSE,   FOR    135    STORES   CLASSIFIED   BY    SIZE 

AND    BY    AMOUNT    OF    FIXTURE    ACCOUNT    PER    $100    OF 

TOTAL    NET    SALES,    1919 


Amoiint  of 
Fljct'ire  Acco'int 

per  tlOO  of 
Total  Net  Sales 

Nurober 

of 
Stores 

Total 
Selling 

Expense 

Total 
Wages  & 
Salaries 

Wages  and  Salaries  per  $100 
of  Selling  Expense 

Claeslfleil 

Total 
Net  Sales 
(In  OOO'b) 

Amount 

Per  Cent. 

Graphio                           Aet^^ 
3     20     40      60      80   100  120   140 

Total 
(Average) 

155 

$1,992,510 

$1,345,703 

467.54 

100.0 

Dnder  $2 
iz  to  U 

$4  to  $6 
$6  k  over 

38 
51 
23 
2S 

535,252 
428,443 
526,474 
702,161 

374,193 
278,755 
216,764 
476,011 

69.91 
65.06 
66.40 
67.79 

103.5 
96.5 
98.3 

100.4 

Total 
(Average) 

' 

Total 
(Average) 

12 

24,945 

16,051 

64.27 

95.2 

Dnfler  ^40 

Under  $2 
$2  to  $4 
$4  to  $6 
$6  &  over 

2 
4 

5 
5 

5,398 
8,215 
7,582 
5,752 

1,300 
4,969 
6,389 
S,87S 

38.26 
60.50 
84.27 
58.64 

', 

56.6 
89.6 
124.8 
86.3 

'. 

Total 
(Average ) 

52 

229,272 

167,315 

72.98 

108.1 

Under  $2 
$2  to  $4 
$4  to  $6 
$6  S:  over 

e 

28 
8 
8 

29,693 
118,454 
45,053 
38,072 

22,832 
81,234 
33,427 
29,822 

76.89 
68.58 
77.54 
78.33 

113.8 
101.5 
115.0 
116.0 

$40  to  $80 

Total 
(Average ) 

48 

587,583 

413,987 

70.46 

104.3 

Dnder  $2 
$2  to  $4 

$4  to  $6 
$6  &  over 

20 

15 

7 

6 

226,744 

168,668 

96,569 

95,602 

160,698 

117,275 

69,094 

66,920 

70.87 
69.53 
71.70 
69.83 

104.9 
102.9 
106.2 
103.4 

$80  to  $180 

] 

Total 
(Average) 

25 

1,150,510 

748, 570 

65.05 

96.3 

Under  $2 
$2  to  $4 
iA   to  *6 
$6  k  ovor 

8 

4 
5 
6 

275,397 
133, 108 
179,470 
562,535 

169,363 

75,257 

107,854 

575,896 

68.76 
56.54 
60.10 
66.83 

101.8 
83.7 
89.0 
98.9 

♦iSO  &  over 

Average  $67.54 


286 


TABLE  200 

TOTAL  SELLING  EXPENSE,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  WAGES  AND  SALARIES 

PER   $100   OF   SELLING  EXPENSE,   FOR    135    STORES   CLASSIFIED   BY    SIZE 

AND    BY    AMOUNT    OF    FIXTURE    ACCOUNT    PER    $100    OP 

TOTAL   NET   SALES,    1918 


Amount  of 
Plxtilre  Account 

per  $100  of 
Total  Net  Sales 

Kumtier 

of 
Stores 

Total 
Selling 
Expense 

Total 
Wages  & 
Salaries 

V(ages  and  Salaries  per  $100- of 
Selling  Expenso 

Classified 

Total 
Not  Sales 
(la  OOO's) 

Aaount 

< 

Per  Cent. 

Graphic                     Actual 
)     20     40      60     80   100   120 

Tcjtal 
(Average ) 

135 

$1,473,360 

$999,983 

$67.87 

100. 0 

Under  $2 
$2  to  $4 
$4  to  $6 
$6  &  over 

20 
45 
34 

35 

244,748 
370,532 
267,521 
590,559 

188,851 
242,626 
158,878 
409,628 

77.16 
65.48 
59.39 
69.36 

113.7 

96.5 

87.5 

102.2 

Total 
(Average) 

: 

: 

• 

Total 
(Average ) 

37 

92,371 

64,726 

70.07 

103.2 

1 

Under  $2 
$2  to  $4 
$4  to  $6 
$6  &  over 

4 

3 

U 

14 

9,959 
19,976 
23,674 
38,762 

7,595 
12,531 
14,750 
29,850 

76.26 
62.73 
62.30 
77.01 

112.4 

92.4 

91.8 

113.5 

ttlder  |40 

: 

Total 
(Average) 

56 

299,694 

211,586 

70.60 

104.0 

Under  $2 
$2  to  |4 
$4  to  $6 

|6  &  over 

8 
22 

15 
11 

33,916 

121,256 

65,956 

78,667 

24.785 
81,433 
45,126 
60,187 

73.08 
67.20 
68.42 
76.61 

107.7 

99.0 

100  .8 

112.9 

#40  to  $80 

1 

t 
1 

Total 
(Avera.go) 

28 

363,676 

242,070 

66.56 

98.1 

1 

ttadar  $2 
♦2  to  $4 
$4  to  $6 

$6  fc  over 

6 
12 

S 
6 

55,117 

161,063 

67,483 

80,013 

38,332 

109,697 

41,854 

52,137 

69.64 
68. U 
62.02 
65.16 

102.5 

10O.4 

91.4 

96.0 

♦so  to  $180 

1 

; 

; 

Total 
(Average) 

14 

717,619 

481,601 

67.11 

93.9 

UOder  $2 
$2  to  |4 

$4  to  |6 
$6  4  over 

3 
3 
3 
5 

145,756 

63,237 

110,409 

393,217 

118,089 
38,910 
57,143 

267,454 

81'.02 
57.02 
51.76 
68.02 

119.4 

84.0 

76.3 

100.2 

#180  as  OTer 

. 

Average  $67,87 


287 


close  of  1919  and,  further,  by  their 
fixture  investment  per  $100  of  total 
net  sales.  Two  methods  of  measuring 
'wages  and  salaries  are  used :  first,  in 
terms  of  sales,  and  second,  in  terms 
of  sales  per  stock  turnover.  This 
table  merits  consideration.  It  should 
be  remembered  that  the  larger  the 
store,  generally  speaking,  the  smaller 
the  inventory  and  the  larger  the  stock 
turnover.  Keeping  this  fact  in  mind, 
the  attention  of  the  reader  is  called 
to  the  details  of  the  table. 

For  stores  which  had  inventories  at 
the  close  of  1919  of  less  than  $20  per 
$100  of  total  net  sales,  it  cost  in  wages 
and  salaries  $5.64  to  sell  $100  worth 
of  goods.  For  those  that  had  inven- 
tories of  $20  to  $40,  it  cost  $7.05,  and 
for  those  that  had  inventories  of  $40 
and  over,  the  amount  was  $6.07. 
Within  each  group  of  stores  having 
these  inventories,  the  table  also  shows 
the  amounts  of  wages  and  salaries  per 
$100  of  total  net  sales  for  stores 
having  different  fixture  investments 
in  relation  to  their  sales.  When  the 
stores  are  classified  in  this  form,  there 
is  a  general  but  not  uninterrupted 
tendency  for  the  amounts  to  increase 
with  the  fixture  investments.  The  ir- 
regularity may  be  due  to  the  size  of 
the  store,  the  rapidity  of  the  stock 
turnover,  and  the  widths  of  the  groups 
used  in  the  classification  of  the  inven- 
tories. The  actual  amounts,  how- 
ever, are  of  interest  in  spite  of  the 
fact  that  they  do  not  regularly  in- 
crease. 

Table  202  also  contains  the  amounts 
of  wages  and  salaries  expressed  in 
terms  of  sales  per  stock  turnover.  As 


the  business  of  these  282  stores  is 
transacted,  it  costs  $6.67  in  wages 
and  salaries  to  sell  $100  worth  of 
goods.  When  the  amount  is  divided 
by  the  average  turnover,  it  becomes 
$3.03.  As  the  inventories  increase, 
the  amounts  of  wages  and  salaries  per 
$100  of  total  net  sales  per  stock  turn- 
over also  increase.  The  average 
amount  for  the  stores  having  inven- 
tories of  less  than  $20  per  $100  of 
total  net  sales  is  $1.28  and  for  those 
with  inventories  of  $40  and  over  per 
$100  of  total  net  sales,  $4.34.  For  the 
group  of  stores  with  inventories  of 
less  than  $20  per  $100  of  total  net 
sales,  the  data  are  inadequate  to  an- 
swer the  question  whether  wages  and 
salaries  per  $100  of  total  net  sales 
per  stock  turnover  increase  or  de- 
crease with  the  amount  invested  in 
fixtures  per  $100  of  total  net  sales. 
For  the  other  two  groups  of  stores, 
when  classified  by  inventories,  the 
data  reveal  a  general  tendency  for 
the  amounts  to  increase  as  the  invest- 
ments in  fixtures  increase.  That  is, 
for  stores  with  a  given  amount  of  in- 
ventory, it  costs  more  in  wages  and 
salaries  per  $100  of  total  net  sales  per 
stock  turnover  to  sell  a  given  amount 
of  goods  when  fixture  investments  are 
large  in  relation  to  sales,  than  when 
they  are  small. 

The  significance  of  Table  202  to  the 
merchant  is  clear  in  certain  respects. 
It  indicates  the  value  of  low  inven- 
tories and  high  turnover  as  a  means 
of  reducing  the  cost  of  wages  and  sal- 
aries in  relation  to  sales.  Moreover, 
it  also  emphasizes  the  fact  that  wages 
and   salaries    are    relatively    low   in 


288 


TABLE  201 

TOTAL  SELLING  EXPENSE,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  WAGES  AND  SALARIES 

PER   $100   OP   SELLING  EXPENSE,   FOR   135    STORES   CLASSIFIED   BY    SIZE 

AND    BY    AMOUNT    OP    FIXTURE    ACCOUNT    PER    $100    OF 

TOTAL   NET   SALES,    1914 


Amount  of 
Fixture  Account 
'  per  $100  of 
Total  Net  Sales 

Ranber 

of 
Stores 

Total 
Selling 
Expense 

Total 
Wa^3  Sc 
Salaries 

nages  and  Salaries  per  |100  of 
Selling  Expense 

Classified 
Total 

Amount 

Per  Cent. 

Bet  Salea 
(In  000'») 

Graphic        Actual 
0  20  40  60  80  100  120 

Total 
(Average ) 

155 

1962,428 

$633, 576 

$65.83 

100.0 

Under  $2 
(2  to  $4 

$4  to  $6 
$6  &  over 

14 
56 

29 
57 

52,942 
166, 673 
204,324 
516,489 

33,168 
131,458 
120,938 
548,012 

62.65 
70.42 
59.19 
67.12 

: 

95.2 
107.0 

89.9 
102.0 

Total 
(Average) 

Total 
(Average) 

63 

146,398 

103,370 

70.61 

107.3 

Under  fS 
|2  to  |4 
H   to  |6 
f 6  &  over 

8 
16 
13 
26 

12,564 
56,413 
26,849 
70,572 

9,542 
25,860 
18,609 
49,359 

75.95 
71.02 
69.31 
69.94 

115.4 
107.9 
105.3 
106.2 

Qbder  |40 

i 

Total 
(Average) 

45 

277,396 

191,060 

68.88 

104.6 

] 

Under  #2 
(2  to  U 
|4  to  |6 

$6  i  over 

4 
13 

8 
20 

15,065 
74,368 
49,140 
138,822 

10,728 

51,828 

27,106 

101, 398 

71.21 
69.69 
55.16 
78.04 

108.2 

105.9 

83.8 

111.0 

#iO  to  leo 

; 

; 

: 

Total 
(Average ) 

22 

302,620 

195,723 

64.68 

98.3 

: 

Under  $2 
»2  to  $4 
$4  to  $6 

$6  k   over 

2 
6 

7 
7 

25,313 

75,892 

110,375 

91,040 

12,898 
53,770 
65,723 
63,332 

50.95 
70.85 
59.55 
69.57 

77.4 

107.6 

90.5 

leo  to  1180 

Total 
(Averape ) 

5 

236,016 

143,423 

60.77 

92.3 

llSO  &  over 

Ibder  $2 
$2  to  U 
$4  to  $6 
$6  8c  over 

1 

4 

17,960 
21fl,065 

9,500 
133,923 

62.90 
61.42 

i 

80.4 
93.9 

1 

Average  t6S.8S 


289 


TABLE  202 

AMOUNT  OF  WAGES  AND  SALARIES  PER  $100  OF  TOTAL  NET  SALES  PER  STOCK  TURN- 
OVER,   FOR   STORES    CLASSIFIED   BY   AMOUNT    OF    IN\^NTORY   PER   $100    OF 
TOTAL    NET    SALES    AND    BY    AMOUNT    OF    FIXTURE    ACCOUNT 
PER  $100  OF  TOTAL   NET   SALES,    1919 


p«r  tlOO  of 
lit  Sales 


Ajsount  ct 
Plxturo  Account 

per  tlOO   of 
tottiX  Hot  Salea 


<"'•«'"«         |*otu«l 
V)     60  60  100  120  140 


0  20  40   60  89  100  lap  140  160  1^ 


Under  |2 
»2  to»* 
|4  to  t6 
(6  k  over 


Under  $2 
t2   to  t4 

*4  to  te 

tik  cvar 


Coder  Is 
«2  to  »4 
t*  to  |C 

$6  h  over 


<i7 


Under  fz 
*2  to  t* 
(4  to  t6 
$6  k  over 


te.er 


6.76 
S.B3 

e.es 

7,77 


4.5S 
4.S2 

e.i£ 


7. OS 


7.12 
6.20 

6.89 

e.u 


6.07 


4.47 
S.62 
7.72 
6.71 


100.0 


XOl.S 
87.4 
108.4 

lie. 6 

S4.6 


102.2 
68.2 
72. S 
91.8 


106.7 


106.7 
93.0 
103.3 
122.2 


ei.o 


67.0 
84.3 
119.7 
lOO.e 


ts.os 


2.32 
2.78 
S.2S 
3. S3 


1.62 
0.9S 
0.96 
1.97 


.94 


2.97 
2.70 
3.13 

s.oa 


4.3* 


3.19 
5.7S 
B.IS 
?.16 


ATerae9  |6.CT 


Iverago  $3.03 


100.0 


93.1 
91.7 

107.J 
U6.S 


ss.e 

30.7 
31.7 
66.0 


97.0 


98.0 
89.1 
103.3 
09.7 


143.2 

US.S 
12>.3 
170.0 
ITO.S 


terms  of  sales  per  stock  turnover  when 
fixture  investments  in  relation  to 
sales  are  kept  at  a  minimum. 

D. — Summary. 

(1).  For  stores  of  a  given  size  and 
with  a  given  amount  invested 
in  fixtures  per  $100  of  total 
net  sales,  the  amounts  of 
wages  and  salaries  per  $100  of 
total  net  sales  tend  generally 
to  decrease  from  year  to  year. 
The  direction  of  change  is  un- 


certain for  wages  and  salaries 
per  $100  of  selling  expense. 

(2).  When  the  stores  are  classified 
by  size,  the  amounts  of  wages 
and  salaries  per  $100  of  total 
net  sales  tend  to  increase  as 
the  amounts  of  investment  in 
fixtures  per  $100  of  total  net 
sales  increase. 

(3).  When  stores  are  classified  by 
size,  the  amounts  of  wages 
and  salaries  per  $100  of  sell- 


290 


ing  expense  tend  neither  to 
increase  nor  to  decrease  as  the 
investments  in  fixtures  in 
terms  of  sales  increase. 

(4).  For  stores  with  a  given 
amount  of  inventory  per  $100 
of  total  net  sales,  the  amounts 
of  wages  and  salaries  in 
terms  of  sales  alone,  increase 
as  the  investments  in  fixtures 
in  terms  of  sales  increase. 
Moreover,  the  amounts  of 
wages  and  salaries  per  $100 
of  total  net  sales  per  stock 
turnover  increase  as  the  fix- 
ture investments  in  terms  of 
sales  increase. 

(3) — YEARLY  AMOUNTS  OP  WAGES  AND 
SALARIES  IN  RELATION  TO  INVEST- 
MENTS IN  FIXTURES  PER  100 
SQUARE  FEET  OF  FLOOR  SPACE. 

In  the  foregoing  discussion,  stores 
have  been  classified  by  the  amounts 
invested  in  fixtures  per  $100  of  total 
net  sales.  In  this  section  the  stores 
are  classified  by  the  amounts  invested 
in  fixtures  per  100  square  feet  of  floor 
space. 

A. — Yearly  Amounts  of  Wages  and 
Salaries  per  $100  of  Total  Net 
Sales  and  per  $100  of  Selling 
Expense,  for  Stores  Classified  hy 
Size,  1919. 

The  records  of  303  stores  are  avail- 
able for  study  in  order  to  determine 
the  amounts  of  wages  and  salaries  per 
$100  of  total  net  sales  and  per  $100 
of  total  net  sales  for  the  amounts  sold 
per  square   foot   of  floor  space  for 


stores  classified  by  size  and  by  the 
amounts  invested  in  fixtures  per  100 
square  feet  of  floor  space.  The  clas- 
sification of  stores  in  this  form  is  con- 
tained in  Table  203. 

For  stores  of  the  same  size,  but  with 
varying  amounts  of  fixture  invest- 
ments in  relation  to  floor  space,  the 
amounts  of  wages  and  salaries  per 
$100  of  total  net  sales  on  the  whole 
tend  to  increase  with  the  investment 
in  fixtures  measured  in  this  form. 
There  are  exceptions  to  this  rule,  but 
on  the  whole  the  same  tendency  which 
was  encountered  for  selling  expense 
obtains  for  wages  and  salaries.  When 
the  amounts  of  wages  and  salaries, 
however,  are  expressed  in  terms  of 
sales  for  the  amount  sold  per  square 
foot  of  floor  space,  they  decrease  gen- 
erally with  the  investment  in  fixtures 
per  100  square  feet  of  floor  space. 
That  is,  the  high  cost  in  wages  and 
salaries  in  relation  to  sales  which  ac- 
companies large  investment  in  fix- 
tures per  unit  of  floor  space  are  com- 
pensated for  by  the  amounts  sold. 
The  disadvantage  which  accrues  to 
the  stores  with  large  fixture  invest- 
ments is  in  fact  an  advantage  in  terms 
of  the  use  to  which  the  space  is  put. 
In  view  of  the  discussion  of  selling 
expense,  pages  164  to  170,  it  is  un- 
necessary further  to  consider  wages 
and  salaries  for  stores  classified  in 
this  form. 

In  Table  204  the  amounts  of  sales 
for  each  $100  of  wages  and  salaries 
paid  are  shown  for  stores  classified  as 
in  Table  203.  As  the  stores  increase 
in  size,  relatively  smaller  sales  are 
secured  for  a  given  amount  of  wages 


291 


TABLE  203 

AMOUNT   OF   WAGES    AND   SALARIES    PER    $100    OF   TOTAL    NET    SALES   PER   SALES   PER 

SQUARE  FOOT  OF  FLOOR  SPACE,  FOR  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT 

OF   FIXTURE    ACCOUNT   PER    100    SQUARE    FEET   OF    FLOOR   SPACE,    1919 


ClasEiriod 
Total 

Amount  of 

Fixture  Account 

per  100  sq.   ft. 

of 

Floor  £^pace 

lluniber 

of 
St ore B 

Hageo  and  Salaries  per  $100  of 
Total  Net  Sales 

(ages   and  Salarlee  per  ilOO  of  Total   Net  Sales 
per  Sales  per  Square  Foot  of  Floor  Space 

Anount 

< 

Per  Cent. 

Per  Cent. 

(In  CCO's) 

Graphic                              1   ^^t„.i 
3     20     40      60     60   100   120   140 

Anount 

0 

'^'•»I*1'=                          1  Actual 
20      40      60     80   100   120   140 

Total 
(AvernKO) 

303 

$6.54 

. 

100.0 

100.0 

Under  440 
$40  to    teo 

|80   to  $120 
$120  fc  over 

74 

105 
65 
61 

6.01 
6.50 
6.56 
6.83 

91.9 
99.4 
100.3 
104.4 

150.6 
115.4 
92.5 
73.1 

Total 
(AverLpe) 

' 

0.19 

• 

Total 
<Averane) 

4S 

4.48 

68.5 

0.31 

119,2 

Under  t40 
^0  to    Sao 

$80  to  5120 
$120  1  over 

11 
24 
S 
7 

3.69 
4.62 
6.50 
4.45 

^— 

54.9 

70.6 
96.3 
68.0 

0.37 
0.30 
0.44 
0.19 

142.5 
115.4 
169.2* 
73.1 

Uniler  ^40 

• 

Total 
(Averaee) 

113 

5.09 

', 

77.8 

0.27 

105.6 

Under  $40 
$40   to     $80 
$80  to  $120 

$120  &  over 

33 
42 
23 
IS 

4.71 
4.54 

5.49 
6.82 

' 

72.0 

69.4 
85.6 
104.5 

0.52 

0.23 
0.25 
0.37 

les.i 
ee.s 

88.5 
142.5 

iiO  to  tSO 

1 

: 

: 

Total 
(Average) 

102 

6.54 

100.0 

0.28 

107.7 

: 

Unde-  $40 
$40  to     $80 
$80  to  $120 

$120  4  ovor 

22 
55 

29 
18 

6.57 
6.72 
6.50 
6.?S 

100.5 
102.6 
99.4 
95.6 

0.36 
0.30 
0.25 
0.19 

■ 

.158.5 
115.4 
96.2 
73.1 

.>o  to  Cieo 

Total 
(Averare ) 

45 

7.30 

111.6 

0.21 

' 

Onder  $40 
$40  to     $80 
Ceo  to  tl20 

S120  t  over 

6 

6 

e 

21 

6.85 
9.11 
7.29 
7.02 

104.4 
159.3 
111.^ 
107.5 

0.29 
0.31 
0.21 
0.17 

111.5 

.1£0  ::  over 

AlU'Cgv  $6.54 


Average  $0.26 

"pull  length  DOt  flhoiro 


and  salaries  paid.  Moreover,  for 
stores  of  the  same  size,  but  with  dif- 
ferent investments  in  fixtures  in  re- 
lation to  floor  space,  the  amounts  of 
sales  secured  for  each  $100  of  wages 
and  salaries  decrease  as  the  fixture 
investments    increase.     The    amounts 


secured  for  a  given  wage  payment  are 
shown  in  Table  204,  and  the  relation- 
ship obtaining  between  them  may  be 
observed  by  consulting  the  graphic 
part  of  the  table. 

In  Table  205  the  amounts  of  wages 
and  salaries  are  expressed,  first,  in 


292 


terms  of  selling  expense,  and  second, 
in  terms  of  selling  expense  for  the 
amounts  sold  per  square  foot  of  floor 
space,*  The  basis  of  classification  for 
the  stores  is  the  same  as  in  Tables  203 

*  The  method  by  which  this  unit  is  com- 
puted is  explained  on  page  4,  item  26. 


and  204.  Moreover,  the  same  stores 
are  used  for  purposes  of  analysis. 
Within  each  group,  when  classified  by- 
size,  the  details  show  that  there  is  no 
general  tendency  for  the  amounts 
either  to  increase  or  to  decrease  as 
the  fixture  investments  in  relation  to 


TABLE  204 

WAGES  AND  SALARIES,  TOTAL  NET  SALES,  AND  AMOUNT  OF  TOTAL  NET  SALES  PER  $100 

OF   WAGES   AND   SALARIES,   FOR   STORES   CLASSIFIED   BY    SIZE    AND   BY    AMOUNT 

OF   FIXTURE   ACCOUNT    PER    100    SQUARE    FEET   OF   FLOOR    SPACE,    1919 


Classlflad 

Amount  of 
Fixture  Account 
per  100  eq.  ft. 
of  Floor  Space 

Number 

of 
Stores 

Total 
Vagee  & 

Total 
■et  Balee 

Total  Hot  Sales  per  $100  of  Wages  and  Salaries 

Total 
Net  Salts 
(InOOO'a) 

( 

Per  Cent. 

>     20     40      60      80  100  120  140  160  XBO  200 

total 
(ATerage) 

903 

$2,367,501 

$36,193,716 

$1,529 

100.0 

ttodar  $40 
$40  to     $80 
$80  to  $120 

$120  fc  over 

74 
105 
69 
61 

409,649 
S9S,U1 
466,200 
696,541 

6,814,481 
9,151,557 
7,104,069 
19.123,611 

1,663 
1,538 
1,524 
1,464 

Total 
(Arerags ) 

100.6 

^^^^^1 

; 

total 
(ATorags) 

45 

62,748 

1,399,886 

2,251 

145.0 

DoOsr  $40 
$40  to     $80 
$80  to  $120 

$120  fc  over 

U 
24 
S 

7 

10,669 
95,769 
6,718 
10,592 

297,455 
773,554 
90,727 
236,150 

2,788 
2,163 
1,587 
2,248 

'. 

182.3 
141.5 
103.8 
147;o 

Ohder  $40 

■ 

\ 

total 
(Average) 

113 

330,557 

6,500,336 

1,966 

128.6 

Itader  $40 
$40  to    $80 
$80  to  $120 

$120  k  over 

93 

42 
23 
IS 

67,981 
108,795 
76,467 
57,314 

1,6^,728 
2,598,605 
1,593,751 
"     640,252 

2,123 
2,205 
1,823 
1,466 

138.8 
144.2 
119.2 
95.9 

$40  to  $80 

Total 
(AveroKe ) 

102 

784,290 

11,986,562 

1,528 

99.9 

(kidar  $40 
$40  to     $80 
$80  to  $120 

$120  k  oTor 

22 
S3 

29 

IS 

167,538 
265,530 
211,240 
139,982 

2,548,246 
3,949,140 

9,250,636 
2,238,340 

1,521 
1,487 
1,559 
1,599 

«9.5 

97.5 
100.7 
104.6 

580  to  SlBO 

1 

Total 
(AvoraRo) 

43 

1,189,906 

16,507,154 

1,370 

89.6 

: 

under  $40 
$40  to    580 
$80  to  $120 

5120  i  over 

8 
6 

e 

21 

143,461 
185,017 
172,775 
688,653 

2,101,052 
2,050,058 
2,368,955 
9,307,069 

1,465 
1,097 
1,371 
1,424 

95.8 
71.7 
69.7 
93.1 

Cl80  i  over 

; 

_ 

Average  tl,ae9 


293 


TABLE  205 

AMOUNT   OF   WAGES   AND   SALARIES    PER    $100    OF    SELLING    EXPENSE    PER    SALES   PER 

SQUARE  FOOT  OF  FLOOR  SPACE,  FOR  STORES   CLASSIFIED  BY  SIZE  AND 

BY  AMOUNT  OF  FIXTURE  ACCOUNT  PER   100   SQUARE 

FEET  OF  FLOOR  SPACE,   1919 


Arount  of 
Fixture  Aeco'int 
por  100  oq.   ft. 
of  Floor  Space 

MUBber 

of 
Stores 

Wages  ajvl  Salaries  per  $100  of 
Selling  Expense 

Wages  and  Salaries  per  $100  of  Selling  Expense 
per  Sales  per  &i'iare  Foot  of  Floor  Space 

Total 

AsDunt 

Per  Cent. 

Amount 

( 

Per  Cent. 

(in  000'«) 

"^•P""                          1  Actual 
3     20     40     60     80  100   120    14o' 

QrapUlo                                      1  .   ^    . 
'^                                         1  lotual 
20     40     60     80   100   120   140   160   180  200  ' 

Itotal 
(Average ) 

JOS 

$65.85 

100. 0 

$2,59 

100.0 

Dnaer  $40 

#40  to     $80 

Sao  to  $120 

Jl20  k  over 

74 
105 
6J 
61 

70.58 
68.17 
67.35 
61<e2 

107.2 
lOJ.S 
103.0 
93.6 

4.00 
3.10 
2.49 
1.69 

154.4 
U9.7 
96.1 
6S.S 

Total 
(Average) 

: 

Total 
f Avorago ) 

4S 

69.37 

105.3 

4.84 

166.9 

tliiaor  $40 
C40  to     $80 

Sao  to  $120 
Sl20  k  over 

U 
24 
S 

7 

64.68 
71.14 
65.24 
62.42 

98.2 
108.0 
129.4 

94.8 

6.61 
4.67 
8.92 
2.67 

255.2- 
180,3 
228.6-' 
105.1 

Onder  $40 

"^^^1 

i 

Total 
fAvsrage) 

US 

71.31 

108.5 

3.82 

147.5 

Dnder  $40 
»40  to     $80 
580  to  $120 

$120  i  over 

S3 
42 
23 
IS 

69.M 
70.61 
70.31 
77.04 

105.8 
107.2 
106.8 
117.0 

4.66 
3.50 
2.97 
4.14 

179,9 
135.1 
114.7 
159.8 

$40  to  $80 

Hill                             ^ 

1  IIHI                      lljl 

'^'"'"^"' 

i 

; 

Total 
(Average ) 

102 

66.78 

101.4 

2.85 

110.0 

Dnler  $40 
$40  to     $80 
$80  to  $120 

$130  &  over 

22 
33 

29 

72.25 
64.75 
63.63 
62.31 

109.7 
98.3 

104.2 
94.6 

3.98 
2.90 

2.69 
1.86 

1S3.T 
112.0 
103.9 

$80  to  tlSO 

; 

t 

I 

Total 
(Average ) 

43 

63.73 

96.8 

1.82 

Ooder  $40 
^  to    $80 
$80  to  $120 

$120  &  over 

6 
6 
9 
21 

69.73 
71.58 
65.49 
60.46 

105.9 
108.7 
99.5 
91.8 

3.00 
2.46 
1.89 
1.46 

$180  i  oter 

^■^^^^^"f 

T9.0 

86.4 

Average  ^e&.8& 


Avor^s^  tS.Sa 


FuXL  leseUi  not  ebown 


floor  space  increase.  The  actual 
amounts,  however,  are  of  interest  be- 
cause they  establish  the  average  con- 
ditions existing  for  1919  for  these 
groups  of  stores.  When  wages  and 
salaries  in  their  relation  to  selling  ex- 
pense are  determined  for  the  amounts 
sold  per  square  foot  of  floor  space, 
they  decrease  as  the  amounts  invested 


in  fixtures  increase.  There  are  certain 
exceptions  to  this  rule,  but  on  the 
whole  it  obtains  with  rather  more 
striking  regularity  than  might  be  ex- 
pected. The  actual  amounts  and  their 
relation  to  each  other  for  the  stores 
as  classified  may  be  seen  by  consult- 
ing the  table. 


294 


B. — Summary. 

(1).  Wages  and  salaries  in  terms 
of  sales  alone  are  relatively 
high  for  stores  having  large 
investments  in  fixtures  per 
100  square  feet  of  floor  space. 

(2).  The  amounts  are  relatively 
low,  however,  when  they  are 
expressed  in  terms  of  sales 
for  the  amounts  sold  per  unit 
of  floor  space. 

(3).  The  amounts  of  wages  and 
salaries  as  proportionate  parts 
of  selling  expense  tend  neither 
to  increase  nor  to  decrease 
generally  for  stores  with  in- 
creasing amounts  invested  in 
fixtures  per  unit  of  floor 
space. 

(4).  When  the  amounts  are  ex- 
pressed in  terms  of  selling  ex- 
pense for  the  amounts  sold  on 
each  unit  of  floor  space,  they 
decrease  as  fixture  investment, 
similarly  measured,  increase, 
thus  suggesting  the  practical 
conclusion  that  high  fixture 
investments  in  relation  to 
floor  space  operate  to  dimin- 
ish relatively  the  amounts 
which  wages  and  salaries  con- 
stitute of  total  selling  ex- 
pense. 

5.  YEARLY  AMOUNTS  OF  WAGES  AND 
SALARIES  IN  RELATION  TO  EXPENDI- 
TURES FOR  ADVERTISING  FOR  STORES 
CLASSIFIED  BY  SIZE,  BY  LOCATION, 
AND  BY  RATES  OF  STOCK  TURN- 
OVER. 

The  order  of  the  discussion  of  the 
amounts  of  total  selling  expense,  for 


stores  classified  by  amounts  of  ad- 
vertising, is  followed  closely  in  the 
treatment  of  wages  and  salaries  per 
$100  of  total  net  sales  and  per  $100  of 
selling  expense  for  stores  similarly 
classified. 

A. — Yearly  Amounts  of  Wages  and 
Salaries  per  $100  of  Total  Net 
Sales  and  per  $100  of  Selling 
Expense,  for  Stores  Classified  hy 
Size,  1919. 

In  the  analysis  of  the  amounts  of 
wages  and  salaries  per  $100  of  total 
net  sales  and  per  $100  of  selling  ex- 
pense, the  records  of  282  stores  for 
1919  are  available  for  study.  The 
stores  are  classified  by  size  and  by  the 
amounts  of  advertising  expenditure 
per  $100  of  total  net  sales. 

In  Table  206  the  amounts  are  ex- 
pressed first,  in  terms  of  sales,  and 
second,  in  terms  of  sales  per  stock 
turnover.*  For  the  282  stores  it  cost 
$6.67  in  wages  and  salaries  to  sell 
$100  worth  of  goods.  For  the  79 
stores  which  spent  in  advertising  less 
than  $1  per  $100  of  total  net  sales, 
the  corresponding  cost  was  $5.93. 
From  this  amount  as  a  minimum,  the 
costs  increase  to  $7.57  for  the  66 
stores  which  spent  between  $2  and  $3 
in  advertising  per  $100  of  total  net 
sales.  For  those  which  spent  more 
than  this  amount,  treated  as  a  total, 
the  cost  was  $6.61.  As  the  stores  in- 
crease in  size,  the  amounts  of  wages 
and  salaries  per  $100  of  total  net  sales 
increase.  This  condition  holds  not 
only  for  the  stores  treated  as  totals, 

*  The  method  by  which  this  unit  is  derived 
is  explained  on  page  4,  item  20. 


295 


but  for  stores  when  classified  by  the 
amounts  expended  for  advertising  per 
$100  of  total  net  sales.  The  increase 
in  the  latter  respect  is  in  some  in- 
stances irregular,  due  primarily  to 
the  small  number  of  stores  involved. 

When  the  amounts  of  wages  and 
salaries  for  the  stores  as  classified  are 
measured  in  terms  of  sales  per  stock 
turnover,  the  average  for  the  entire 
group  is  $3.03.  For  those  which  spent 
under  $1  in  advertising  per  $100  of 
total  net  sales,  it  is  $2.82,  and  from 
this  amount  as  a  minimum  the 
amounts  increase  to  $3.29  for  the  66 
stores  which  spent  in  advertising  per 
$100  of  total  net  sales,  between  $2 
and  $3.  For  those  that  spent  $3  and 
over,  the  corresponding  cost  is  $2.75. 
For  each  group  of  stores  classified  by 
size,  the  amounts  of  wages  and  sal- 
aries per  $100  of  total  net  sales  per 
stock  turnover  increase  as  the  amounts 
spent  in  advertising  per  $100  of  total 
net  sales  increase.  There  are  some 
exceptions  to  this  rule,  however,  the 
size  and  nature  being  shown  in  actual 
amounts  and  in  graphic  form  in  the 
columns  of  the  table  under  this  cap- 
tion. 

Attention  has  already  been  called 
to  the  fact  that  wages  and  salaries  per 
$100  of  total  net  sales  per  stock  turn- 
over increase  as  stores  increase  in 
size  for  the  stores  selling  less  than 
$180,000  annually,  and  decrease  for 
those  selling  in  excess  of  $180,000.  It 
is  unnecessary  from  this  point  of  view 
to  discuss  Table  206. 

In  Table  207  the  same  282  stores 
are  classified  as  in  Table  206,  but  the 
amounts  of  wages  and  salaries  are  ex- 


pressed in  terms,  first,  of  selling  ex- 
pense, and  second,  in  terms  of  selling 
expense  per  stock  turnover.  For  the 
entire  group  treated  as  a  whole,  wages 
and  salaries  constitute  $65.67,  or 
roughly  two-thirds  of  each  $100  of 
selling  expense.  As  the  stores  in- 
crease in  size  the  amounts  decrease, 
the  range  being  from  $71.92  for  stores 
with  sales  of  $40,000  to  $80,000  to 
$62.93  for  stores  with  sales  of  $180,- 
000  and  over.  Within  each  group  of 
stores  and  for  the  total,  the  amounts 
spent  for  wages  and  salaries,  meas- 
ured in  terms  of  selling  expense,  de- 
crease as  the  amounts  of  expenditure 
for  advertising  in  terms  of  sales  in- 
crease. This  condition  is  to  be  ex- 
pected in  view  of  the  fact  that  wages 
and  salaries  and  advertising,  com- 
bined, constitute,  on  the  average,  ap- 
proximately 88  per  cent,  of  selling  ex- 
pense. It  will  be  noted,  however,  that 
the  amounts  of  advertising  are  ex- 
pressed in  sales,  while  wages  and 
salaries  are  measured  in  terms  of  sell- 
ing expense.  It  is  unnecessary  to  in- 
dicate the  actual  amounts  for  each 
group  of  stores  in  view  of  the  fact 
that  these  are  set  out  both  in  tabular 
and  in  graphic  form  in  Table  207. 

Wages  and  salaries  are  also  ex- 
pressed in  Table  207  in  terms  of  $100 
of  selling  expense  per  stock  turnover. 
As  stores  increase  in  size,  the  amounts 
decrease  from  $-17.39  as  a  maximum 
for  stores  with  sales  less  than  $40,000, 
to  $22.48  for  those  with  sales  of  $180,- 
000  and  over.  The  decrease  is  much 
more  noticeable  when  wages  and  sal- 
aries are  expressed  in  this  form  than 
when  measured  in  terms  of  selling 


296 


TABLE  206 


AMOUNT  OF  WAGES  AND  SALARIES  PER  $100  OF  TOTAL  NET  SALES  PER  STOCK  TURN- 
OVER, FOR  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT  OF  ADVER- 
TISING  PER    $100    OF    TOTAL    NET    SALES,    1919 


CUaslriad 

Total 
Met  Sales 

Aaount  of 

Advarttalne 

par  $100  of 

Total 

Net  Sales 

number 

of 
Stores 

Bages  and  Salaries   per   JlOO  of   Total  Met  Sales 

Aa{^3  and 

Salaries  por  4100  of  Total  Hat  Sales 
per  Stock  Turnover 

mount 

Per  Cent. 

Amount 

Per  Cent, 

(In  000*8) 

0"!^o                               Actual 
)     80      40      60      80  100   120  140 

Oraphla 
)     80     40      60     80  100   180  140 

Actual 

•      Total 
(AvorsRo) 

282 

46.67 

; 

100.0 

$3.03 

100.0 

Dndsr  $1 
»1  to  $8 
»2  to  »3 
$3  t  over 

79 

100 
66 
37 

5.93 

6.12 
7.57 
6.61 

88.9 
91.8 
113.5 
99.1 

2.82 
3.06 
3.29 
2.75 

93.1 
101.0 
108.6 

Total 
(Average) 

; 

""^""^^^^   I 

; 

: 

^HBBB 

s 

Total 
(Average ) 

33 

4.26 

63.9 

2.34 

93.7 

Cbdar  t40 

under  $1 
«lto  $2 
♦8  to  $3 
$3  4  over 

15 
14 
8 
2 

3.79 
5.39 
1.62 
3.35 

56.8 
80.3 
24.3 
S0.2 

2.23 
4.15 

0.70 
2.56 

73.6 
137.0 
23.1 
85.1 

"~" 

Total 
(Average ) 

106 

S.3« 

80.4 

2.96 

96.3 

Otdsr  $1 
»1  to  «8 

$2  to  $3 
43  *  over 

43 

37 
80 
6 

4.58 
5.28 
6.14 
8.57 

66.7 
78.9 
92.1 
128.5 

2.54 
3.09 
3\41 

5.04 

83.3 
102.0 
112.5 

165.3* 

$40  to  |80 

1 

1 

Total 
(Average) 

96 

6.85 

102.7 

3.61 

119.1 

under  $1 
n  to  #8 
»8  to  43 
43  &  over 

la 

39 
26 
IS 

7.44 

6.07 
7.24 
7.39 

111.5 
91.0 
108.5 
110.  e 

3.54 

116.3 
100.3 
125.7 
135.6 

tSO  to   $180 

; 

total 
(Average) 

45 

7.15 

107.8 

64.8 

Obdar  4l 
♦l  to  48 
48  to  43 
4Sft  orar 

3 
10 
18 
14 

7.87 
6.63 
8.03 
6.29 

1 

109.0 
103.1 
120.4 
94.3 

2.20 

HBO  ft  oTar 

• 

87.5 

• 

2.25 

74.3 

Avsrags  46.67 


Average  43.03 

Pull  length  not  shown 


expense  alone.  This,  of  course,  fol- 
lows as  a  result  of  the  increased  rates 
at  which  stocks  are  turned  as  stores 
increase  in  size. 

Tables  206  and  207  should  be  inter- 
preted with  the  following  facts  in 
mind:    First,  the  amounts  of  wages 


and  salaries  per  $100  of  total  net 
sales  increase  as  stores  increase  in 
size.  Second,  wages  and  salaries  per 
$100  of  selling  expense  decrease  as 
stores  increase  in  size.  Third,  amounts 
of  advertising  per  $100  of  total  net 
sales  increase   as  stores  increase  in 


297 


size.  Fourth,  the  rates  at  which  stock 
is  turned  increase  with  the  increased 
size  of  stores.  The  figures  in  these 
tables  constitute  standards  or  norms 
of  expense  distribution  for  the  stores 
considered,  and  are  of  value  to  mer- 
chants in  measuring  the  relative  po- 
sitions of  their  own  stores  when  clas- 
sified in  the  form  used. 


B. — Yearly  Amounts  of  Wages  and 
Salaries  per  $100  of  Total  Net 
Sales  and  per  $100  of  Selling  Ex- 
pense, for  Stores  Classified  hy 
Size  of  City  in  Which  Located* 
1919. 

In  Tables  208  and  209,  the  same 
282  stores  which  are  used  in  Tables 

*  Population  figures  are  for  1920. 


TABLE  207 

WAGES   AND    SALARIES    PER    $100    OF    SELLING    EXPENSE    PER    STOCK    TURNOVER,    FOR 

STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT  OF  ADVERTISING 

PER  $100  OF  TOTAL  NET  S.U.ES,  1919 


Anotmt  of 

ilvsrtloliw 

par  tioo  0? 

To  til 

BM  Sales 

Kvixber 

of 
stores 

ffages  and  Salaries  per  SlOO 
of  Selling  Exponee 

Wages  and  Salaries  per  vlOO  of  Selling  Expense 
per  Stock  Turnover 

Tot^l 

Amount 

Pffr  Cent. 

Anotmt 

Per  Cent. 

(Id  OOO'i) 

Graphic 
)     20      40     60     80   100   120   140 

Actual 

Or^PMo                                1  Aotual 

0     20     40     60     60   100   120   140   160   180  200 

total 

282 

t65.67 

100.0 

J29.8S 

1 

lOO.O 

Qoder  tl 
♦l  tot2 
»2  to  »3 
♦S  k  over 

79 
100 
66 
S7 

85.87 
72.42 
CS.16 
63.51 

127.7 
110.3 
09.2 
61.5 

39.94 
36.21 
28.33 
22.50 

133.6 

121,5 
04.9 
74.7 

Total 
(Avspage) 

Total 
(Averago) 

S3 

71.09 

108.2 

47.39 

158  .a 

DniJor  $1 
tl   to  tZ 
%2  to  tJ 

$5  k  over 

15 
14 
2 
i 

75.61 
75.71 
30.73 
47.13 

115.1 
115.3 
46.6 
71.8 

44.48 
58.24 
13.  S5 
56.25 

149.0 
195.1 
44.0 
121.4 

Omar  %V> 

^ 

— 

Total 
(Average) 

106 

71.92 

109.5 

39.96 

133.9 

Dndor  tl 
tl  to  t2 
t2  to  tS 
t^  k  over 

«3 

SO 
6 

79.37 
71.64 
65.92 
64.73 

120.8 
109.1 
100.4 
98.6 

44.09 
42.14 
56.62 
38.06 

147.T 
141  .e 
122  .T 
127.6 

t40  to^ 

: 

t 

Total 
(Average) 

98 

67.45 

102.7 

55.50 

118.9 

Older  tl 
tl  to  tZ 
t2  to  ti 
tS  k  over 

18 
39 
25 
IS 

65.15 
71.66 
62.26 
56.55 

129.7 
109.1 
94.8 
86.1 

40.55 
35.64 
32.77 
31.42 

i35.a 

120.1 
109.8 
105.9 

160  to  tiao 

""^^^"^"i 

Total 
(AveraRe) 

4S 

62.93 

95.8 

22.48 

75.S 

under  tl 
tl  to  t2 
t2  to  tS 
tS  tl  over 

3 

10 

la 

14 

91.78 
73.49 
66.55 
51.67 

1 

159.7 
111.9 
101.3 
79.0 

27.81 
26.27 
24.65 
18.55 

93.2 
94.7 
82.6 
62.1 

llSO  ti  ovor 

i 

^^^^^^^^  i 

■^■■111       ■    I 

: 

Amr*e>  t65.67 


Average  tss.es 


298 


206  and  207  are  classified,  irrespective 
of  size,  by  location  and  by  the 
amounts  spent  for  advertising  per 
$100  of  total  net  sales.  A  moment's 
consideration  of  them  is  of  interest. 
As  shown  in  Table  208,  it  cost  on  the 
average  in  wages  and  salaries  $6.12 
to  sell  $100  worth  of  goods  in  the 
stores  in  small  cities.  For  the  78 
stores  in  the  large  cities,  the  corre- 
sponding cost  was  $7.17.  For  the 
stores  in  the  small  cities  the  amounts 
increase  as  the  amounts  spent  for 
advertising  per  $100  of  total  net  sales 
increase.  Regularity  of  change,  how- 
ever, for  the  stores  in  the  large  cities 
does  not  hold.     When  stores  in  the 


two  locations  having  the  same  amount 
of  expenditure  for  advertising  per 
$100  of  total  net  sales  are  compared, 
the  amounts,  in  every  case  except  one, 
are  lower  for  the  stores  in  the  small 
than  for  those  in  the  large  cities. 
It  will  be  remembered,  however,  in 
comparing  these  figures  that  store- 
size  is  ignored.  It  cannot,  however, 
be  forgotten  in  assigning  significance 
to  this  fact.  On  the  whole,  the  stores 
in  the  small,  are  smaller  on  the  aver- 
age than  those  in  the  large  cities,  and 
undoubtedly  this  explains  in  part  the 
difference  in  the  amounts  of  wages 
and  salaries  per  $100  of  total  net 
sales. 


TABLE  208 

AMOUNT  OF  WAGES  AND  SALARIES  PER  $100  OF  TOTAL  NET   SALES  PER  STOCK  TURN- 
OVER, FOR  STORES  CLASSIFIED  BY   SIZE  OF   CITY  AND  BY   AMOUNT  OF 
ADVERTISING  PER   $100   OF  TOTAL   NET   SALES,    1919 


Eize 

of 

City 

(in  OOO's) 

Amomt  of 

Advertising 

per  ClOO  or 

Total 

Not  Sales 

Nunbcr 

of 
Stores 

Wages  ana  Salaries  per  OlOO  of  Total  Met  Sales 

'.iagos  and  Salaries  per  viOO  of  Total  llet  Sales 
per  StDcU  Ti.'Tnovcr 

Amount 

Per  Cent. 

Amount 

Per  Cent, 

''■■^P""                       1  Actual 
)     20     40     60     80  100   120   140 

^^«f^^°                      i Actual 
0     20     40     €0     80  100  ICO  140 

Total 
(AvoragcJ 

282 

J6.67 

100.0 

J3.03 

100.0 

DnUor  *1 
♦l  to  J3 

SS  to  $3 
$5  k  over 

79 
100 
66 

57 

5. 95 
6.12 
7.67 

6.61 

88.9 
91.8 
113.5 
99.1 

2.82 
S.06 
5.29 
2.75 

95.1 

101.0 
108.6 
90.8 

Totol 
(Avertiee) 

; 

Totel 
(AvLr-ge) 

20" 

6.12 

1 

91.6 

5.22 

106.5 

^^^^^^H 

Under  Jl 
{1  to  C£ 
J2   to   i3 
'^  &  over 

72 
79 
J9 
14 

5.ei 

6.08 
6.50 
6.86 

t 

64.1 
91.2 
96.8 
102.8 

2.81 
5.36 
5.66 

4.04 

92.7 

111.6 
120.8 
133.5 

Oniier 

i 

Total 
(Averspe) 

78 

7.17 

107.5 

2.76 

91.1 

Under  tl 
«1  to  $2 

is  X.0  a 

iZ  &  ovor 

7 
21 
27 

23 

6.21 
8.15 
6.57 

117.5 
93.1 

122.2 
98.5 

3.1' 
2.^8 
3.13 
2.53 

103.6 
81.8 

103.3 
83.5 

40  and 

: 

Aver  ago  ^aC? 


Average  ^.05 


299 


TABLE  209 


AMOUNT  OF  WAGES  AND  SALARIES  PER  $100  OF  SELLING  EXPENSE  PER  STOCK  TURN- 
OVER, FOR  STORES  CLASSIFIED  BY  SIZE  OF   CITY   AND   BY   AMOUNT  OF 
ADVERTISING  PER   $100   OF   TOTAL  NET   SALES,    1919 


of 

citr. 

Amount   of 

Advertljlne 

per  llOO  of 

Total 

hat  Sales 

mwber 

of 
StorC3 

*agoo  and  Salaries   per  $100  of 
Selling  Lxpenje 

Wages  and  Salaries  per  $100  of  Selling  Sxpau» 
per  Stock  Turnover 

Anount 

Per  Cent. 

Amount 

( 

Per  CoDt. 

0      20      40      60      80    100    ir^O    140 

Graphic 

1    Actual 

20      40      60      80   100   120   140 

Total 
(Avurage ) 

£82 

♦65.67 

100.0 

529.85 

. 

100.0 

UnUor  $1 
«1  to  t2 
»2  to  »3 
Is  k  over 

79 
XOO 
66 
37 

83.87 
72.42 
65.16 
53.51 

127.7 
110.3 
99.2 
81.5 

39.94 
36.21 
28.33 
22.30 

133.8 
121.3 
94.9 
74.7 

Total 

: 

i 

Total 
(AMr;.ee) 

204 

71.09 

108.3 

37.42 

125.4 

Under  tl 
ll   to  %2 

»2  to  »3 
♦3  I.  o7or 

72 
79 
39 
14 

82.50 
73.52 
63. Ll 
57.41 

125.6 
112.0 
96.7 
67.5 

41.25 
40.84 
35.28 
33.78 

138.2 
136.8 
118.2" 
113.2 

Under 

Total 
(Avorago) 

78 

62.03 

94.5 

23.86 

79.9 

under  |1 

♦i  to  »a 
iz  to  %3 
»3  t  over 

.7 
21 

27 
23 

86.15 
70.51 
65.90 
52.90 

131.2 

107.4 
100.5 
80.6 

3«.46 

28.20 
25.38 
20.35 

115.4 
94.S 
85.0" 
68.2 

40   uv3 

r- 

over 

; 

Average  v65*67 


Average  $29.6S 


"WTien  wages  and  salaries  are  ex- 
pressed in  terms  of  sales  per  stock 
turnover,  as  in  Table  208,  the  average 
cost  is  higher  for  the  204  stores  in 
the  small  than  for  the  78  in  the  large 
cities.  Moreover,  the  same  condition 
holds  for  three  of  the  four  groups  of 
stores  differently  located,  but  with 
similar  expenditures  for  advertising 
per  $100  of  total  net  sales.  This  fact 
is  undoul>tedly  attributable  in  large 
part  to  the  more  rapid  turns  which 
characterize  the  stores  in  the  large 
cities.  The  figures  are  submitted  for 
what  they  are  worth  as  showing  the 
conditions  which  ()])tain.  They  must, 
however,  be  interpreted  in  the  light 


of  the  conditions  named  for  Tables 
206  and  207. 

In  Table  209,  wages  and  salaries 
are  expressed  in  terms  of  selling  ex- 
pense for  the  282  stores  classified  as 
in  Table  208.  For  the  204  stores 
located  in  the  small  cities,  wages  and 
salaries  constituted  $71.09  of  every 
$100  of  selling  expense;  for  the  78 
stores  in  the  large  cities  the  amount 
was  $62.03.  That  is,  wages  and  sal- 
aries are  a  relatively  smaller  propor- 
tion of  selling  expense  for  stores  in 
large  than  for  stores  in  the  small 
cities.  When  stores  of  different  loca- 
tion, but  with  the  same  expenditures 
for  advertising  per  $100  of  total  net 


300 


sales,  are  compared,  the  amounts  are 
lower  for  two  and  higher  for  two 
groups  of  stores  located  in  the  small 
than  for  those  located  in  the  large 
cities.  The  average  for  the  entire 
group,  therefore,  must  be  considered 
in  the  light  of  these  divergent  ten- 
dencies. The  size  of  stores  is  un- 
doubtedly of  significance  in  determin- 
ing the  actual  amounts  involved. 

"When  wages  and  salaries  are  ex- 
pressed in  terms  of  selling  expense 
per  stock  turnover,  the  averages  for 
the  stores  in  the  two  city-groups  are 
not  only  lower  than  when  they  are 
expressed  in  selling  expense  alone, 
but  are  in  the  inverse  order  so  far  as 
size  is  concerned.  The  amount  for 
the  204  stores  in  the  small  cities  is 
$37.42,  and  for  the  78  in  the  large 
cities,  $23.86.  Moreover,  the  amounts 
are  larger  for  the  stores  in  the  small 
cities  than  for  those  in  the  large  cities 
when  classified  by  expenditures  for 
advertising  per  $100  of  total  net  sales. 
This  condition  is  due  not  so  much  to 
the  absolute  difference  in  wages  and 
salaries  as  a  part  of  selling  expense, 
as  to  the  relative  rapidity  with  which 
stock  is  turned  in  stores  with  different 
locations.  Here  again  the  actual 
amounts  are  of  interest  inasmuch  as 
they  constitute  the  norms  of  expense 
distribution  found  in  these  stores. 

C. — Yearly  Amounts  of  Wages  and 
Salaries  per  $100  of  Total  Net 
Sales  and  per  $100  of  Selling 
Expense,  for  Stores  Classified  hy 
Bates  of  Stock  Turnover,  1919. 

In  Tables  210  and  211,  respectively, 
wages  and  salaries  are  expressed  in 


terms  of  sales  and  of  selling  expense 
for  stores  classified  by  rates  of  stock 
turnover  and  by  expenditures  for 
advertising  per  $100  of  total  net  sales. 
The  body  of  Table  210  is  of  interest. 
For  the  145  stores  that  turned  their 
stock  less  than  twice,  it  cost  in  wages 
and  salaries  $6.54  to  sell  $100  worth 
of  goods.  For  those  which  turned 
their  stock  between  two  and  three 
times,  and  three  times  and  over, 
the  corresponding  costs,  respectively, 
were  $6.84  and  $6.51.  That  is,  the 
average  amount  was  highest  for  the 
stores  turning  their  stock  between 
two  and  three  times.  For  the  other 
two  groups  the  amounts  are  essen- 
tially constant. 

Interest  in  the  table  lies  quite  as 
much  in  the  amounts  spent  for  adver- 
tising as  in  the  rates  at  which  stock 
is  turned  in  1919.  The  order  of  the 
table  makes  it  possible  to  compare  the 
amounts  of  wages  and  salaries  per 
$100  of  total  net  sales  for  stores  hav- 
ing given  rates  of  stock  turnover,  but 
with  different  amounts  spent  for 
advertising  per  $100  of  total  net  sales. 
Without  specifying  in  detail  each  of 
the  various  average  amounts,  it  is  of 
interest  to  observe  that  the  amounts 
of  wages  and  salaries  per  $100  of 
total  net  sales  increase  with  the  ex- 
penditures for  advertising  per  $100 
of  total  net  sales  for  the  stores  which 
turned  their  stock  less  than  two  times. 
A  corresponding  increase,  except  for 
one  group  of  stores,  also  holds  for 
those  which  turned  their  stock  be- 
tween two  and  three  times.  For  the 
37  stores  with  stock  turnover  rates  of 
three  and  over,  the  amounts  are  ir- 


301 


regular  and  the  direction  of  change 
uncertain. 

In  interpreting  Table  210,  it  should 
be  remembered  that  store-size,  as 
such,  is  not  used  as  a  basis  of  classi- 
fication, although  generally  it  may  be 
said  that  the  more  rapidly  stocks  are 


turned  and  the  greater  the  amounts 
spent  for  advertising  in  relation  to 
sales,  the  larger  the  store.  Accord- 
ingly, the  tendency  for  the  amounts 
of  wages  and  salaries  per  $100  of 
total  net  sales  generally  to  increase 
with  expenditures  for  advertising  in 


TABLE  210 

TOTAL  NET  SALES,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  WAGES  AND  SALARIES  PER 

$100  OF  TOTAL  NET  SALES,  FOR  STORES  CL^^SSIFIED  BY  RATES  OF  STOCK 

TURNOVER   AND   BY    AMOUNT    OF   ADVERTISING    PER    $100 

OF  TOTAL   NET    SALES,    1919 


Amount  of 

Advertising 

per  llOO  of 

Total 

Set  Bale* 

Braaber 

of 
Stores 

Total 
Bat  Salaa 

Total 
Wage*  t: 
Salaries 

Wages  and  Salarlea  per  llOO  of 
Total  Hot  Salea 

E2t«3    of 

Ltook 
Tomovar 

< 

Per  Cent. 

Oraphle                     Actual 
)     20     40      60     80  100  120 

Total 

282 

135,563,014 

12,371,762 

|6.67 

1 

100.0 

Ttadar  |1 
|1  to  |2 
|2  to  Is 
Is  &  OT«r 

79 

100 

66 

37 

5,955,246 

9,843,487 

11,364,997 

'     8,899,264 

353,880 
602,877 
860,553 
654,952 

5.93 
6.12 
7.67 

6.61 

1 

88.9 

9i.a 

U3.5 
99.1 

rrtal 

; 

(Avu-^o) 

; 

1 

^^^^i 

Total 
(Average) 

145 

11.611,884 

759,775 

6.54 

: 

98.1 

1 

VoOmr  |1 
|l  to  |2 

|2  to  Is 
|3  »  orer 

44 

SS 
29 
17 

2,705,693 
4,040,688 
3,267,854 
1,698,872 

156,834 
258,437 
221,601 
122,903 

s.eo 

6.40 

6.7S 
7.69 

87.0 

96.0 

101.6 

115.3 

: 

Under  2 

1 

Total 
(ATerage) 

100 

15,987,018 

1,093,660 

6.84 

102.5 

: 

Under  |l 
|1  to  12 
|2  to  |3 
Is  fc  orer 

22 
37 
26 
15 

1« 465, 134 
4,277,216 
5,341,954 
4,902,714 

82,210 
281,771 
424,271 
305,408 

5.61 
6.59 
7.94 
6.28 

64.x 

98.8 

119.0 

93.4 

a  to  fc 

Total 
(ATerage) 

37 

7,964,112 

6X8,327 

6.51 

97.6 

8  k  ovor 

Under  ll 
|1  to  |2 
|2  to  Is 

Is  k  over 

13 

e 
11 

5 

1,784,417 
1,525,588 
2,755,809 
1,898,298 

114,356 

€2,669 

214,681 

126,641 

6.41 
4.11 
7.79 
6.67 

96.1 

61.6 

116.8 

Average  $6.67 


302 


TABLE  211 

TOTAL  SELLING  EXPENSE,  WAGES  AND  SALARIES,  AND  AMOUNT  OF  WAGES  AND  SALARIES 

PER    $100    OF    SELLING    EXPENSE,    FOR    STORES    CLASSIFIED    BY    RATES 

OF    STOCK   TURNOVER   AND    BY    AMOUNT   OP   ADVERTISING 

PER     $100     OF     TOTAL    NET     SALES,     1919 


Amount  of 

Advertising 

per  $100  of 

Total 

Net  Sales 

Humber 

of 
Stores 

Total 
Selling 
Expense 

Total 
Weiges  & 
Salaries 

Wages  and  Salaries  per  $100  of 
Selling  Expense 

Rates  of 
Stock 

Anount 

C 

Per  Cent. 

Turnover 

Graphic         .j  ^^^ 
)  20  40  60  80  100  120  140 

Total 
(Average ) 

282 

#3,611,688 

$2,371,762 

$65.67 

! 

100.0 

Under  |1 
|1  to  $2 
#2  to  #3 
#3  &  over 

79 

100 

66 

37 

421,324 

832,475 

1,320,718 

1,037,171 

353,380 
602,877 
860,553 
554,952 

83.87 

72.42 
63.16 
S3. 51 

> 

127.T 

U0«» 

99.3 

81.5 

Total 

(Average) 

Total 
(Average) 

1415 

1,103,147 

759,775 

68.87 

s 

104.9 

Under  ^1 
♦l  to  |2 
♦2  to  |3 
♦3  k  over 

44 
$5 

29 

17 

190,547 

545,623 
"356,165 
211,012 

156,834 
258,437 
221,601 
122,903 

82.39 
74.77 
62.22 
58.24 

! 

125.5 

113.9 

94.7 

88.7 

Iftider  2 

; 

• 

: 

1 

Total 
(Average) 

100 

1,694,631 

1,093,660 

64.54 

98.3 

Under  $1 
ll  to  |2 
*2  to  «3 
$3  &  over 

22 
37 
26 
15 

99,888 
387,951 
629,697 
577,095 

82,210 
281,771 
424,271 
305,408 

82.30 
72.63 
67.38 
52.92 

125.3 

110.6 

102.6 

80.6 

2  to  3 

; 

1 

Total 
(Average) 

37 

813,910 

518,327 

63.68 

97.0 

1 

Under  f 1 
$1  to  |2 
$2  to  $3 
$3  &  over 

13 
8 

11 
5 

131,089 

98,901 

334,856 

249,064 

114,336 

62,669 

214,681 

126,641 

87.22 
63.37 
64.11 
50.35 

132.3 
96.5 
97.6 
77.4 

^^^""^^1 

! 

Average  $65.67 


terms  of  sales  is  explained  in  part  by 
the  size  of  the  stores.  In  spite  of  this 
limitation  of  the  data,  the  actual 
amounts  are  of  interest  in  themselves. 
In  Table  211  the  basis  of  classifica- 
tion is  the  same  as  in  Table  210,  the 
amounts  of  wages  and  salaries,  how- 


ever, being  expressed  in  terms  of 
selling  expense.  For  the  stores  which 
turned  their  stock  less  than  twice,  the 
amount  which  wages  and  salaries  con- 
stitute of  every  $100  of  selling  ex- 
pense is  $68.87.  The  corresponding 
amounts  for  those  which  turned  their 


303 


stock  between  two  and  three  times, 
and  three  times  and  over,  are  $64.54 
and  $63.68,  respectively.  That  is,  the 
amounts  decrease  as  the  rates  of 
stock  turnover  increase. 

For  each  group  of  stores  classified 
by  rates  of  stock  turnover,  the  details 
of  the  table  make  it  possible  to  com- 
pare the  amounts  of  wages  and  sal- 
aries per  $100  of  selling  expense  for 
stores  spending  different  amounts  for 
advertising  in  relation  to  sales.  The 
basis  of  classification  of  wages  and 
salaries  is  the  relation  which  they 
bear  to  selling  expense,  while  that  of 
advertising  is  the  relation  which  it 
bears  to  sales.  Advertising,  however, 
constitutes  a  part  of  selling  expense 
as  do  also  wages  and  salaries.  Ac- 
cordingly, with  this  form  of  classi- 
fication, it  is  to  be  expected  that  the 
amounts  of  wages  and  salaries  per 
$100  of  selling  expense  will  decrease 
with  the  increase  in  advertising  ex- 
penditure per  $100  of  total  net  sales. 
Such  a  decrease  characterizes  each 
group  of  stores  when  classified  by 
rates  of  stock  turnover.  The  extreme 
differences  are  most  noticeable  in 
stores  which  turned  their  stock  most 
rapidly.  It  is  unnecessary'  to  indicate 
for  each  group  of  stores  the  actual 
size  of  these  amounts  or  the  i-elative 
rates  at  which  they  decrease.  Such 
comparisons  may  be  made  by  the 
reader  if  he  is  interested. 

In  Tables  208  to  211,  inclusive, 
store  size  Ls  ignored  in  the  classifi- 
cation. The  data  should  be  inter- 
preted with  this  fact  in  mind,  inas- 
much as  the  amounts  of  wages  and 
salaries,  in  relation  to  selling  expense, 


seem  to  be  determined  by  the  size  of 
stores,  by  the  rates  at  which  stock  is 
turned,  and  by  the  amount  expended 
for  advertising  in  relation  to  sales. 

D. — Summary. 

(1).  The  amounts  of  wages  and 
salaries  per  $100  of  total  net 
sales  and  per  $100  of  total 
net  sales  per  stock  turnover, 
increase  as  the  expenditures 
for  advertising  in  terms  of 
sales  increase.  This  holds  for 
all  stores  and  for  stores  of  a 
given  size. 

(2).  For  stores  with  a  given 
amount  of  advertising  expen- 
diture in  terms  of  sales,  the 
amounts  of  wages  and  salaries, 
measured  in  terms  of  sales 
alone,  increase  as  stores  in- 
crease in  size.  The  amounts 
in  terms  of  both  sales  and 
stock  turnover  increase  with 
the  size  of  the  stores  for  those 
having  annual  sales  of  less 
than  $180,000,  and  decrease 
for  those  having  sales  in  ex- 
cess of  this  amount. 

(3).  The  amounts  of  wages  and 
salaries  per  $100  of  selling 
expense,  and  per  $100  of  sell- 
ing expense  per  stock  turn- 
over, decrease  as  the  amounts 
of  advertising  in  terms  of 
sales  increase,  and  also  as  the 
size  of  the  stores  increases. 

(4).  For  stores  with  a  given 
amount  of  advertising  expen- 
diture per  $100  of  total  net 


304 


sales,  wages  and  salaries  in 
terms  of  sales  alone  are  higher 
in  the  large  than  in  small 
cities,  while  in  terms  of  sales 
per  stock  turnover  they  are 
loM^er  in  large  than  in  small 
cities, 

(5).  For  stores  with  a  given 
amount  of  advertising  expen- 
diture per  $100  of  total  net 
sales,  the  proportions  of  sell- 
ing expense  attributable  to 
wages  and  salaries  tend  to  be 
neither  higher  nor  lower  in 
small    than    in    large    cities. 


The  amounts  of  wages  and 
salaries  per  $100  of  selling 
expense  per  stock  turnover 
are  higher  for  stores  in  the 
small  than  for  those  in  large 
cities. 

(6).  When  stores  are  classified  by 
rates  of  stock  turnover,  the 
amounts  of  wages  and  salaries, 
when  expressed  in  terms  of 
sales,  increase  and  in  terms  of 
selling  expense,  decrease  as 
the  amounts  of  advertising 
per  $100  of  total  net  sales 
increase. 


305 


V.     EXPENDITURES  FOR  ADVERTISING 


1. — EXPENDITt^RES  FOB  AD\T31TISING 
FOB  STORES  CLASSIFIED  BY  YEARS, 
BY  SIZE    AND  BY  LOCATION. 

The  expression,  "expenditures  for 
advertising,"  includes  all  the  money 
spent  for  advertising,  as  such,  as  well 
as  the  salaries  of  window  trimmers 
and  advertising  men.  In  the  small 
stores  where  such  employees  do  not 
give  their  full  time  to  advertising  or 
to  window  trimming,  the  compensa- 
tion paid  to  them  is  included  in  wages 
and  salaries.  Moreover,  in  establish- 
ments having  window  trimmers  and 
advertising  men,  all  forms  of  com- 
pensation paid  to  them  are  included 
in  advertising  in  spite  of  the  fact  that 
occasionally  they  may  have  devoted 
part  of  their  time  to  selling.  In  inter- 
preting the  following  data,  these  facts 
should  be  kept  in  mind.  They  may 
help  to  explain  in  part  some  of  the 


differences  in  the  amounts  of  adver- 
tising expenditure  for  stores  of  dif- 
ferent size.* 

A. — Yearly  Amounts  of  Expenditure 
for  Advertising  per  $100  of  Total 
Net  Sales  and  per  $100  of  Selling 
Expense,  1919,  1918,  and  1914. 

The  records  of  154  identical  stores 
for  the  years  1919,  1918,  and  1914  are 
available  for  the  study  of  the  amounts 
of  expenditure  for  advertising  charge- 
able to  selling.  In  Table  212,  these 
amounts  are  expressed  in  terms  of 
sales.  For  the  three  years  combined, 
the  expenditure  for  advertising  per 
$100  of  total  net  sales  was  $2.30.    In 

*  It  should  be  noted  that  * '  advertising ' ' 
aa  used  herein  differs  in  some  respects  from 
the  corresponding  item  in  the  Bureau's 
study,  Costs,  Merchandising  Practices,  Ad- 
vertising, and  Sales  in  the  Betail  Distribu- 
tion of  Clothing,  Volume  V. 


TABLE  212 

TOT.U.   NET   SALES,   ADVERTISING,   AND  AMOUNT   OF   ADVERTISING   PER   $100   OF  TOTAL 
NET    SALES,    FOR    154    IDENTICAL    STORES,    1919,    1918,    AND    1914 


Nimbor 

of 
Store- 
years 

Total 
Hot  Sales 

Total 
Advertising 

Advertl 

3lng  per  $100  of  Total  Net  Sales 

Years 

Amount 

Per  Cent. 

Gr^P"«         Actual 
5  20  40  60  80  100  120 

Total 

462 

$44,835,499 

$1,050,669 

$2.30 

1 

100.0 

(AveraE©) 

• 

1919 
191B 
1914 

154 
154 
154 

20,892,764 

14,714,515 

9,228,220 

463,940 
326,047 
240,682 

2.22 
2.22 
2.61 

96.5 

96.5 

113.5 

\z..-..^....     .    ■.■rrr^ 

1 

Average  $2.30 


306 


1914  the  corresponding  amount  was 
$2.61,  in  1918,  $2.22,  and  in  1919, 
$2.22.  That  is,  there  was  a  decrease 
between  1914  and  1918,  but  between 
1918  and  1919  the  amounts  remained 
constant. 

In  Table  213  the  amounts  of  adver- 
tising expenditures  per  store  and 
sales  per  store  are  set  out  for  154 
stores  so  as  to  show  relatively  the 
rates  at  which  both  items  increased 
in  1918  and  1919  as  compared  with 
1914.    The  table  also  shows  the  rela- 


age  increases  in  both  items  in  1918 
and  1919  over  1914.  Selling  expense 
increased  106  per  cent.,  and  advertis- 
ing expenditures,  92.8  per  cent.,  be- 
tween 1914  and  1919.  Smaller  in- 
creases in  both  elements  of  expense 
occurred  between  1914  and  1918. 
When  the  amounts  of  advertising 
expenditure  are  expressed  per  $100 
of  selling  expense,  they  decreased 
10.8  per  cent,  between  1914  and  1918 
and  6.4  per  cent,  between  1914  and 
1919. 


TABLE  213 

AVERAGE  AMOUNT  AND  PER  CENT.  INCREASE  OR  DECREASE  OP  TOTAL  NET   SALES  AND 

ADVERTISING  PER  STORE,  AND  AMOUNT  OF  ADVERTISING  PER  $100  OF  TOTAL 

NET    SALES,    FOR    154    IDENTICAL    STORES,    1919,    1918,    AND    1914 


Average  Anotint  of  Total  Fet  Sales  per  Store 


Average  Amoujit  of  Advertlalng 
per  JlOO  or  Total  Met  Sales 


Per  Cent.  Increa 


0   20  40   60  80  100  120  140 


Per  Cent.  Increase 


0  20  40   60  80  100 


Per  Cent.  Dec 


Graphic 

40  60  80  100 


isis 

191« 


$135,667 
9S,S49 
S»,924 


126.4 
S9.S 


$3,01} 
2,117 
1,563 


92.8 
35.4 


$2.22 
2.22 
2.61 


14.9 
14.9 


tive  decrease  in  the  advertising  ex- 
penditure in  relation  to  sales  in  1918 
and  1919  as  compared  with  1914.  For 
the  stores  in  question,  while  sales  in- 
creased 126.4  per  cent,  between  1914 
and  1919,  the  amounts  expended  for 
advertising  increased  in  the  same 
period  92.8  per  cent.  When  the  ad- 
vertising expenditures  are  expressed 
in  terms  of  sales,  the  amounts  in  1919 
and  1918  were  14.9  per  cent,  lower 
than  in  1914. 

Table  214  shows  the  amounts  of 
selling  expense  and  advertising  ex- 
penditure per  store  and  the  percent- 


From  Tables  212  to  214,  inclusive, 
it  may  be  concluded  as  follows :  First, 
advertising  expenditures  per  $100  of 
total  net  sales  for  stores,  irrespective 
of  size,  decreased  between  1914  and 
1918  and  remained  constant  between 
1918  and  1919  in  spite  of  the  fact  that 
both  sales  and  expenditures  for  ad- 
vertising per  store  increased  in  each 
of  the  years  as  compared  with  1914. 
Second,  expenditures  for  advertising 
per  $100  of  selling  expense  for  stores, 
irrespective  of  size,  decreased  between 
1914  and  1918,  and  increased  between 
1918  and  1919. 


307 


TABLE  214 

AVER^VGE  AMOUNT  AND  PER  CENT.  INCREASE  OR  DECREASE  OF  SEI.LING  EXPENSE  AND 

ADVERTISING   PER   STORE,    AND  AVERAGE    AMOUNT  .OP    ADVERTISING   PER 

$100  OF  SELLING  EXPENSE,   FOR   154  IDENTICAL   STORES, 

1919,   1918,  AND  1914 


Artnf  iBDtmt  of  SaUlng  Bxp«n«a 
I>er  Stor* 

ATsr>gs  Aaount  of  Advertlsllis 
per  8tor« 

Avorsno  AsKiunt  of  Advertising 
per  9100  of  Selling  Bxpenee 

Jot* 

Aammt 

tT  C«nt.    Icerekse  over  1014 

Jtooimt 

Per  Cent.   Inoreaoe  over  1914 

Aommt 

Per  Cent.  Decrease  from  1914 

1                >!r»phlo 

1                Orepblo 
Actual    1 

Actual     1 

0      so      40      eo     80   100    120 

0      M      40      60     80   IOC 

0     20     40     60     eo  100 

10,«S2 

106.0 
51. B 

ts.ou 
2,  in 

ez.a 

SS.4 

$21.26 
20.26 

6.4 

10. a 

3 
3 

1»U 

.» 

1«1« 

e.ST9 

1.SU 

28.72 

B. — Yearly  Amounts  of  Expenditure 
for  Advertising  per  $100  of  Total 
Net  Sales  and  per  $100  of  Selling 
Expense,  for  Stores  in  1919, 1918, 
and  1914,  Classified  hy  Size. 

In  Table  215,  stores  are  classified 
by  size  and  for  each  group  the  ex- 
penditures for  advertising  per  $100 
of  total  net  sales  are  shown  for  each 
of  the  different  years  under  consid- 
eration. The  total  section  of  this 
table  is  the  same  as  that  shown  in 
Table  212.  For  each  group  of  stores, 
when  classified  by  size,  the  amount  of 
expenditure  for  advertising  per  $100 
of  total  net  sales  was  less  in  1918  than 
in  1914,  and  in  each  group,  except 
that  which  includes  stores  with  an- 
nual sales  of  $180,000  and  over,  less 
in  1919  than  in  1918. 

In  Table  216  the  amounts  of  adver- 
tising expenditures  per  $100  of  sell- 
ing expense  are  shown  for  the  154 
stores  in  each  of  the  years  1914,  1918, 
and  1919,  as  classified  in  Table  215. 
For  the  entire  group,  these  expendi- 
tures   decreased    between    1914    and 


1918,  and  increased  between  1918  and 

1919.  When  the  stores  are  classified 
by  size,  for  each  group  there  was  a 
decrease  in  the  amounts  between  1914 
and  1918.  Between  1918  and  1919 
the  amounts  increased  for  two  groups 
and  decreased  for  two  groups  of 
stores. 

C. — Yearly  Amounts  of  Expenditure 
for  Advertising  per  $100  of  Total 
Net  Sales  and  per  $100  of  Selling 
Expense,  for  Stores  in  1919, 1918, 
and  1914,  Classified  by  Size  of 
City  in  Which  Located* 

In  Table  217,  the  154  stores  are 
classified  by  the  size  of  the  city  in 
which  they  are  located,  two  size- 
groups  being  used  for  this  purpose. 
For  the  115  stores  located  in  the  small 
cities,  net  sales  per  store  were  109.4 
per  cent,  higher  and  expenditures  for 
advertising  per  store,  67.1  per  cent, 
higher  in  1919  than  in  1914.  Between 
1914  and  1918,  sales  per  store  in- 
creased 49.4  per  cent,  and  advertising 

*  Population  figures  are  for  1920. 


308 


per  store,  27.9  per  cent.  Accordingly, 
when  the  expenditures  for  advertis- 
ing are  expressed  in  terms  of  sales, 
there  was  a  decrease  of  14.1  per  cent, 
in  the  amounts  between  1914  and 
1918,  and  of  19.9  per  cent,  between 
1914  and  1919. 

For  the  39  stores  located  in  the 
large  cities,  net  sales  increased  be- 
tween 1914  and   1919  by   144.6  per 


cent.,  while  advertising  increased 
110.5  per  cent.  Between  1914  and 
1918  the  sales  for  these  stores  in- 
creased 70.3  per  cent.,  and  the 
amounts  of  advertising,  40.7  per  cent. 
When  the  advertising  expenditures 
are  expressed  in  terms  of  sales  there 
was  a  decrease  of  17.2  per  cent,  be- 
tween 1914  and  1918,  and  of  13.8  per 
cent,  between  1914  and  1919. 


TABLE  215 

TOTAL   NET   SALES,   ADVERTISING,   AND   AMOUNT   OF   ADVERTISING  PER  $100   OF  TOTAL 
NET   SALES,   FOR   154  IDENTICAL   STORES    CLASSIFIED   BY   SIZE, 

1919,  1918,  AND  1914 


Classined 

Total 
Het  Sales 

Years 

KuBiter 

of 
St ore - 
years 

Total 
Net  Sales 

Total 
Advertising 

Advertising  per  $100  of  Total  Het  Sales 

Amount 

Per  Cent. 

(Is  OOO'a) 

Graphlo 
5  20  40  60   80  100  120  140  160 

Aotual 

Total 
(Average ) 

462 

(44,835,499 

(1,030,669 

(2.30 

100.0 

1919 
1918 
1914 

164 
154 
154 

20,892,764 
14,714,515 
9,228,220 

463,940 
526,047 
240, 662 

3.22 
2.22 
2.61 

96.5 

96.5 

113.5 

Total 
(Average ) 

Total 
(Average ) 

129 

3,590,553 

60,972 

1.70 

73.9 

Itedar  (40 

1919 
1918 
1914 

14 
42 

73 

428,714 
1,256,795 
1,905,044 

6,262 
19,197 
35,513 

1.46 
1.63 
1.86 

6S.S 
66. S 

eo.9 

—   i 

Total 
(Average ) 

172 

9,775,007 

167,646 

1.72 

74.8 

t40  to  $80 

1919 

leis 

1914 

67 
63 

8S 

6,222,468 
3,662,794 
2,869,746 

42,797 
60,416 
64,433 

1.3S 
1.66 
8.23 

57.8 
71.7 
97.0 

i 

Total 
(Average ) 

117 

13,695,639 

319,703 

2.33 

101.3 

: 

191» 
1918 
1914 

66 
66 
£4 

6,866,816 
4,090,203 
2,738,621 

140,074 
98,491 
81,138 

Z.04 
2.41 
2.96 

68.7 
104.8 
128.7 

t&o  to  lieo 

1 

Total 
(Average ) 

44 

17,774,300 

482,348 

2.71 

117.8 

1919 
1918 
1914 

25 
14 
6 

10,574,767 
6,704,723 
1,694,810 

274,807 
147,943 
69,598 

2.65 
2.59 
3.52 

115.2 
112.6 
153.0 

Jieo  k  over 

Average  (2.30 

309 


TABLE  216 

TOTAL  SELLING  EXPENSE,   ADVERTISING,   AND   AMOUNT   OF   ADVERTISING   PER   $100   OF 

SELLING    EXPENSE,    FOR    154:    IDENTICAL    STORES    CLASSIFIED 

BY    SIZE,    1919,    1918,    AND    1914 


Classified 

Total 
Bet  Sailes 
(In  OOO'b) 

Years 

H'jiaber 

of 
Stoi^" 
years 

Total 
Sellln5 
Expensj 

Total 
Advertising 

Advertising  per  |100  of  Selling  Expense 

^JWrtTTTlt*. 

Per  Cent. 

Qraphic         Actual 
)  20  40  60  80  100  120 

Total 
(Average) 

462 

f4, 851, 112 

$1,030,669 

§21.25 

100.0 

1 

Total 

1919 
1918 
1914 

154 
154 
154 

2,182,027 
1,609,671 
1,059,414 

463,940 
326,047 
240,682 

21.26 
20.26 
22.72 

100.0 
95.3 

ioe.9 

(Arera-3 ) 

1 

Total 
(Average ) 

129 

304, 954 

60,972 

19.99 

; 

94.1 

1 

Tbder  $40 

1919 
1918 
1914 

14 
43 
73 

29,018 
101,621 
174, 315 

6,262 

19, 197 
35,513 

21.58 

18.89 
20.37 

101.6 
88.9 
95.9 

Total 
(Average ) 

172 

913,357 

167,646 

18.35 

86.4 

^^^^^^^^ 

^  to  $80 

1919 
1918 
1914 

67 
63 
52 

246,207 
545,293 
321,857 

42,797 
60,416 
64,433 

17.33 
17.50 
20.02 

81.8 
82.4 
94.2 

t 

i 

: 

Total 
(Average) 

117 

1,491,801 

519,703 

21.43 

100.8 

|80  to  $180 

1919 
1918 
1914 

58 
35 
24 

719,436 
445,138 

327,227 

140,074 
98,491 
81,138 

19.47 
22.13 
24.80 

91.6 
104.1 
116.7 

1 

Total 
(Average) 

44 

2,141,000 

432,348 

22.53 

106.0 

?180  &   over 

1919 
1918 
1914 

25 

14 

5 

1,187,366 
717,619 
256,015 

274,807 

147,943 

69,598 

23.14 

20.62 
25.25 

108.9 

97.0 

118.8 

; 

1  ' 

Averagtt  #21.25 


An  inspection  of  this  table  shows 
that  both  sales  and  advertising  ex- 
penditures increased  more  rapidly 
for  the  stores  in  the  large  than  for 
those  in  the  small  cities,  when  the 
comparisons  are  made  between  1914 


and  1919,  and  1914  and  1918.  In 
spite  of  this  fact,  however,  the  de- 
crease in  the  amounts  of  advertising 
expenditure  per  $100  of  total  net 
sales  between  1914  and  1919  was  less 
in  the  stores  in  the  large  than  in  those 


310 


TABLE  217 

RELATION  OF  ADVERTISING  TO  TOTAL  NET  SALES,  FOR  154  IDENTICAL  STORES  CLASSI- 
FIED  BY    SIZE   OF   CITY,    1919,    1918,    AND    1914 


Size 

of 

City 

(in  ooo'e) 

Years 

Number 

of 
Stores 

Net  SsJea 

Advertising 

Total 

Average  Amount 
per  Store 

Total 

Average  Amount 
per  Store 

Per  $100  of  TotBl 
Net  Sales 

Amount 

Per  Cent. 
Increase 
over  1914 

^kBOunt 

Per  Cent. 
Increase 
over  1914 

Amoxmt 

Per  Cent« 
Decrease 
from  iy.4 

Total 
(Average) 

1919 
1918 
1914 

154 
154 
154 

120,892,764 
14,714,515 
9,228,220 

$155,667 
95,549 
59,924 

126.4 
69.5 

1465,940 
526,047 
240,682  . 

♦5,015 
2,117 
1,565 

92.8 
SS.4 

$2.22 
2.22 
2.61 

14.9 
14.0 

Under 

40 

1919 
191B 
1914 

115 
115 
115 

10,005,585 
7,156,283 
4,777.158 

87,005 
62,055 
41,540 

109.4 
49.4 

164,710 
125,986 
98,545 

1,«5S 

1,096 
857 

67*1 

27.9 

1.65 
1.77 
2.06 

19.9 
14.1 

40  end 
over 

1919 
1918 
1914 

59 
59 
59 

10,887,179 
7,578,252 
4,451,082 

279, 158 
194,614 
114,150 

144.6 
70.5 

299,250 
200,061 
142,159 

7,675 
5,150 
5,645 

110.5 
40.7 

2.76 
2.64 
3.  IS 

13.8 
17.2 

in  the  small  cities.  An  inverse  condi- 
tion obtains  for  the  stores  in  the  two 
city-groups  when  1918  is  compared 
with  1914.  No  recognition  is  taken 
of  store  size  in  Table  217,  the  basis 
of  comparison  being  identical  stores 
with  different  locations.  The  influ- 
ence of  the  size  of  store  upon  adver- 
tising expenditure  is  discussed  later. 
In  Table  218,  the  154  stores  are 
classified  as  in  Table  217.  This  table 
compares,  from  year  to  year,  the 
amounts  of  selling  expense  and  adver- 
tising for  stores  located  in  cities  of 
different  size.  For  the  115  stores 
located  in  the  small  cities,  selling  ex- 
pense per  store  increased  between 
1914  and  1919  by  85.4  per  cent.,  and 
between  1914  and  1918  by  40.8  per 
cent.  The  corresponding  percentages 
of  increase  in  advertising  were  67,1 
and  27.9,  respectively.  "When  the 
expenditures  for  advertising  are  ex- 
pressed in  terms  of  $100  of  selling 


expense,  the  amounts  decreased  by 
9.8  per  cent,  between  1914  and  1919 
and  by  9.1  per  cent,  between  1914 
and  1918. 

For  the  39  stores  in  the  large  cities, 
the  selling  expense  per  store  increased 
between  1914  and  1919  by  123.2  and 
between  1914  and  1918  by  61,3  per 
cent.  The  corresponding  percentages 
of  increase  in  the  expenditures  for 
advertising  were,  respectively,  110.5 
and  40.7.  When  the  advertising  ex- 
penditures are  expressed  in  terms 
of  selling  expense,  the  amounts  de- 
creased between  1914  and  1919  by 
5.7,  and  between  1914  and  1918  by 
12.8  per  cent. 

When  the  two  groups  of  stores  are 
compared,  it  is  found  that  the  per- 
centages of  increase  in  selling  expense 
and  advertising  expenditure  were 
greater  for  the  stores  located  in  the 
large  cities.  When  the  advertising 
expenditures  are  expressed  in  terms 


311 


of  selling  expense,  however,  the  de- 
crease is  smaller  between  1914  and 
1919  for  the  stores  in  the  large,  than 
for  those  in  the  small  cities.  An  in- 
verse condition  holds  for  the  decreases 
between  1914  and  1918. 

In  Table  219  the  154  stores  are 
classified  by  years  and  by  location, 
the  purpose  being  to  show,  in  each  of 
Ihe  years,  the  relative  amounts  of 
advertising  expenditures  per  $100  of 
total  net  sales  for  the  stores  as 
located.  For  the  stores  in  the  com- 
bined years  the  average  amount  ex- 
pended for  advertising  in  relation  to 
sales  by  the  stores  in  the  small  cities 
was  $1.78.  The  corresponding  amount 
spent  by  the  stores  in  the  large  cities 
was  $2.80.  That  is,  the  average 
amount  for  the  stores  in  the  small 
cities  was  77.4  per  cent,  and  for  the 
stores  in  the  large  cities,  121.7  per 


cent,  of  the  average  for  all  stores 
irrespective  of  location.  Between 
1914  and  1918,  and  1918  and  1919, 
the  amounts  decreased  for  stores 
located  in  the  small  cities.  In  those 
located  in  the  large  cities,  there  was 
a  decrease  between  1914  and  1918, 
and  an  increase  between  1918  and 
1919. 

The  basis  of  classification  in  Table 
220  is  the  same  as  that  in  Table  219, 
but  the  advertising  expenditures  are 
expressed  as  proportionate  parts  of 
selling  expense.  For  the  stores  in  the 
combined  years,  expenditures  for  ad- 
vertising constituted  $18.88  of  every 
$100  of  selling  expense  for  the  stores 
in  the  small,  and  $22.99  for  the  stores 
in  the  large  cities.  Relatively,  these 
amounts  are  88.8  and  108.2  per  cent., 
respectively,  of  the  average  for  all 
stores.    Between  1914  and  1918,  and 


TABLE  218 

RELATION  OF  ADVERTISING  TO  SELLING  EXPENSE,  FOR  154  IDENTICAL  STORES  CLASSI- 
FIED BY  SIZE  OF  CITY,  1919,   1918,   AND   1914 


Years 

Number 

of 
Stores 

Selling  Expense 

Advertising 

size 

of 
City 

Total 

Average  Ajnoimt 
per  Store 

Total 

Average  Amount 
per  Store 

Per  $100  of 
Selling  Expense 

(In  OOO'b) 

Araovmt 

Par  Cent. 
Increase 
over  1914 

Amount 

Per  Cent. 
Increase 
over  1914 

Amount 

Per  Cent. 
Decrease 
from  1914 

Total 
(Average) 

1919 

1918 
1914 

154 
154 
164 

$2,182,027 
1,609,671 
1,059,414 

tl4, 169 

10,452 

6,879 

106. 0 
51.9 

$463, 940 
326,047 
240,602 

$3,013 
2,117 
1,563 

92.8 
35.4 

$21.26 
20.26 
22.72 

6.4 
10. S 

Under 
40 

1919 

1918 
1914 

115 
115 
115 

896,863 
680,787 
483,712 

7,799 
5,920 
4,206 

85.4 
40.8 

1641,710 

125,986 
98,543 

1,432 

1,096 
857 

67.1 
27.9 

18.37 
18.51 
20.37 

9.S 
9.1 

40   and 
over 

1919 
1918 
1914 

39 
39 
39 

1,285,164 
928,884 
575,702 

32,953 
23,818 
14,762 

123.2 
61.3 

299,230 
200,061 
142,139 

7,673 
5,130 
3,645 

110.5 
40.7 

23.28 
21.64 
24.69 

5.7 
12.8 

312 


TABLE  219 

TOTAL   NET   SALES,   ADVERTISING,   AND   AMOUNT   OF  ADVERTISING  PER  $100   OF  TOTAL 

NET    SALES,    FOR    154    IDENTICAL    STORES    CLASSIFIED    BY    SIZE 

OF    CITY,     1919,     1918,     AND     1914 


Years 

Number 

of 
Store- 
years 

Total 
Net  Sales 

Total 
Advertising 

Advertising  per  $100  of  Total  Net  Sales 

Size 
of 

Amoiant 
( 

For  Cent. 

City 
(in  000' s)  . 

G'-'^Phlc           Actual 
)   20   40   60   80  100  120  140 

Total 
(Averago) 

462 

§44,635,499 

^1,030,669 

$2.30 

100,0 

Total 

1919 
1913 
1914 

154 
154 
154 

20,892,764 

14,714,515 

9,228,220 

463,940 
326,047 
240,682 

2.22 
2.22 
2.61 

96.5 

96.5 

113.5 

(Average ) 

i 

1 

! 

Total 
(Average ) 

345 

21,919,006 

339,239 

1.78 

77.4- 

Undsr 

1919 
1918 
1914 

115 
115 
115 

10,005,585 
7,136,233 
4,777,138 

164,710 

125,986 

98,543 

1.65 
1.77 
2.06 

71.7 
77.0 
89.6 

40 

! 

! 

1 

Total 
(Average ) 

117 

22,916,493 

641,430 

2.80 

121.7 

40  and 

1919 
1916 
1914 

39 
39 
39 

10,887,179 
7,578,232 
4,451,082 

299,230 
200,061 
142,139 

2.75 
2.64 
3.19 

119.6 
114.8 
138.7 

over 

^" 

Average  $2.30 


1918  and  1919,  the  amounts  decreased 
for  the  stores  in  the  small  cities,  while 
between  1914  and  1918  they  decreased 
and  between  1918  and  1919  they  in- 
creased for  the  stores  in  the  large 
cities.  The  purpose  of  this  table  is  to 
make  readily  comparable  from  year 
to  year  the  amounts  for  identical 
stores  when  they  are  classified  accord- 
ing to  location. 

In  Tables  214,  216,  218,  and  220, 
advertising  expenditures  are  ex- 
pressed as  proportionate  parts  of 
selling  expense.  Wages  and  salaries 
constitute,  on  the  average,  for  the  154 
stores  considered,   66.7   per  cent,   of 


total  selling  expense.  The  changes  in 
wages  and  salaries  from  year  to  year, 
therefore,  affect  the  relation  of  expen- 
ditures for  advertising  to  total  selling 
expense.  From  year  to  year,  as  the 
proportions  of  total  selling  expense 
attributable  to  wages  and  salaries  in- 
crease, the  proportions  attributable  to 
advertising  expenditures  decrease, 
and  vice  versa.  The  ' '  other ' '  expenses 
properly  chargeable  to  selling  make 
up  the  balance  of  selling  expense. 
The  changes  of  these  expenses  from 
year  to  year  are  indicated  in  the 
tables  which  pertain  to  them.* 
*  Pages  392  to  395. 


313 


TABLE  220 

TOTAL   SELLING  EXPENSE,   ADVERTISING,   AND   AMOUNT   OF   ADVERTISING  PER   $100   OF 

SELLING  EXPENSE,  FOR  154  IDENTICAL  STORES  CLASSIFIED  BY 

SIZE   OF   CITY,    1919,    1918,   AND   1914 


Years 

Hvnnber 

of 
Storo- 
yeara 

Total 

Selling 
Expense 

Total 
Advertising 

Advertising  per  flOO  of  Selling  Expense 

City 
(In  cco'i) 

Amount 

Per  Cent. 

OrapMc                        Actual 
D     20     40     60     80  100  120 

Total 
(Averape) 

462 

$4,851,112 

11,030,669 

$21.25 

1 

100.0 

i 

1910 
1918 
1914 

154 
154 
154 

2,182,027 
1,609,671 
1,059,414 

465,940 
526,047 
240,682 

21.26 
20.26 
22.72 

100.0 

95.5 

106.9 

(Average) 

i 

Total 
(ATerago) 

945 

2,061,562 

589,239 

18.88 

88.8 

i 

1919 
1918 
1914 

115 
U5 
115 

896,865 
680,787 
485,712 

164,710 

125,986  * 
98,545 

1S.57 

18.51 

,    20.57 

86.4 
87.1 
95.9 

40 

: 

1 

Total 
(Average) 

117 

2,789,750 

641,430 

22.99 

108.2 

i 

1919 
19ia 
1914 

59 
59 
59 

1,285,164 
928,864 
575,702 

299,250 
200,061 
142, 139 

25.28 
2i.64 
24.69 

109.6 
101.4 
116.2 

over 

1 

i 

Average  121.25 


From  Tables  217  to  220,  inclusive, 
it  may  be  conclude(3  as  follows :  First, 
advertising  expenditures  per  $100  of 
total  net  sales  decreased  between  1914 
and  1918,  and  1914  and  1919  for  the 
stores  when  classified  by  location,  the 
extent  of  decrease  between  1914  and 
1919  being  larger  for  the  stores  in 
small  than  for  those  in  the  large 
cities,  and  between  1914  and  1918 
larger  for  those  in  the  large  than  for 
those  in  the  small  cities.  Second,  for 
the  stores  classified  by  location,  ad- 
vertising expenditures  per  $100  of 
selling  expense  decreased  between 
1914  and  1918,  and  1914  and  1919, 


for  stores  in  the  two  city-groups,  the 
extent  of  the  decrease  between  1914 
and  1918  for  the  stores  in  the  small 
being  greater  than  for  those  in  the 
large  cities,  and  between  1914  and 
1918  greater  for  those  in  the  large 
than  for  those  in  the  small  cities. 
Third,  the  amounts  of  advertising 
expenditure  per  $100  of  total  net  sales 
are  larger  for  the  stores  in  the  large, 
than  for  those  in  the  small  cities. 
Fourth,  for  the  stores  as  a  whole,  the 
expenditures  for  advertising  per  $100 
of  selling  expense  decreased  between 
1914  and  1918,  but  increased  between 
1918  and  1919.     They  increased  be- 


314 


tween  1918  and  1919  for  the  stores 
in  the  large,  and  decreased  for  those 
in  the  small  cities. 

B — Yearly  Atnounts  of  Expenditure 
for  Advertising  per  $100  of  Total 
Net  Sales  and  per  $100  of  Selling 
Expense,  for  Stores  Classified  hy 
Size  and  hy  Size  of  City  in  Which 
Located*  1919,  1918,  and  1914. 

In  Tables  221  to  224,  inclusive,  the 
amounts  of  advertising  expenditures 
per  $100  of  total  net  sales  in  the  com- 

*  Population  figures  are  for  1920. 


bined  and  individual  years  are  shown 
for  stores  of  different  size  and  with 
different  location.  The  variations  in 
these  amounts  are  interesting.  As  the 
stores  increase  in  size,  no  account 
being  taken  of  location,  the  amounts 
in  relation  to  sales  increase.  This 
condition,  however,  does  not  hold  in 
the  combined  years  for  the  stores 
located  in  the  small  cities,  but  it  does 
hold  over  the  entire  range  of  sizes  for 
the  stores  located  in  the  large  cities. 
The  amounts  are  larger  without  ex- 
ception for  the  stores  in  the  large 


TABLE  221 

TOTAL  NET   SALES,   ADVERTISING,   AND  AMOUNT   OF   ADVERTISING  PER  $100   OF   TOTAL 

NET  SALES,  FOR  154  IDENTICAL  STORES  CLASSIFIED  BY   SIZE  OF  CITY 

AND     STORE,     1919,     1918,     AND     1914,     COMBINED 


Size 

of 

Classified 

Total 
Hat  Sales 
(la  ooo'a) 

number 

of 
Store- 
yeara 

Total 
Met  Sales 

Total 
Advertising 

Advertising  per  $100  of  Total  Net  Sales 

A&otmt 

( 

Per  Cent. 

(la  ooo'a) 

Or«plil« 
20  40  60  80  100  120  14 

Actual 
> 

Total 
(Average) 

462 

$44,835,499 

$1,030,669 

$2.30 

1 

100.0 

Total 
(Average} 

Under  |40 
$40  to  $80 
$80  to  llSO 

|180  &  over 

129 

172 

117 

44 

3,590,553 

9,775,007 

15,695,639 

17,774,300 

60,972 
167,646 
319,703 
482,348 

1.70 
1.72 
2.33 
2.71 

73.9 

74.8 

101.3 

117.8 

1 

Total 
(Average ) 

345 

21,919,006 

389,239 

1.78 

77.4 

Unfler 
40 

Under  $40 
|40  to  |80 
|80  to  $180 

$180  &  ever 

121 

138 

77 

9 

3,317,538 
7,650,532 
8,832,022 
2,119,114 

56,128 
122,305 
175,202 

35,604 

1.69 
1.60 
1.98 
1.68 

73.5 
69.6 
86.1 

73.0 

J 
1 

Total 
(Average ) 

117 

22,916,493 

641,430 

2.80 

121.7 

j 

Uncer  $40 
$40  to  $80 
$80  to  $180 

$180  &  over 

8 
34 

40 
35 

273,215 
2,024,475 
4,963,617 
15,655,186 

4,844 
45,341 
144,501 
446,744 

1.77 
2.24 
2.91 
2.85 

77.0 

40  and 

1 

over 

i 

126.5 
123.9 

! 

Average  $2.30 


315 


than  for  those  of  the  same  size  in  the 
small  cities.  A  comparison  of  this 
sort  is  more  satisfactory  than  one 
which  includes  the  totals  only. 

In  view  of  the  details  shown  in 
Tables  221  to  224,  inclusive,  it  is 
unnecessary  in  the  text  discussion  to 
indicate  the  characteristic  amounts 
or  the  general  relations  w^hich  they 
bear  to  each  other  in  each  of  the 
different  years.  The  reader  may  con- 
sult those  in  which  he  is  interested. 

In  Tables  225  to  228,  inclusive, 
advertising  expenditures  per  $100  of 


selling  expense  are  shown  for  stores 
of  different  size  and  location.  For 
the  stores  in  the  combined  years,  as 
the  stores  increase  in  size,  advertising 
constitutes  an  increasing  proportion 
of  selling  expense.  This  condition, 
however,  holds  only  when  no  account 
is  taken  of  the  location  of  the  stores. 
When  they  are  classified  by  location, 
the  amounts  for  the  stores  in  the 
small  cities  decrease  as  the  size  of  the 
stores  increases,  and  for  those  in  the 
large  cities  increase  as  the  stores  in- 
crease in  size.    For  stores  with  sales 


TABLE  222 

TOTAL  NET   SALES,   ADVERTISING,   AND  AMOUNT   OF  ADVERTISING  PER  $100   OF   TOTAL 
NET  SALES,  FOR  154  STORES  CLASSIFIED  BY  SIZE  OF  CITY  AND  STORE,  1919 


Size 

of 

City 

Classified 

Total 
Jlet  Sales 
(In  OOO'a) 

Nimber 

of 
Stores 

Total 
Net  Sales 

Total 
Advertising 

Advertising  per  $100  of  Total  Met  Sales 

Amount 

Per  Cent. 

(In  OOO'a) 

Oraphlo           .  ^  , 
Actual 

J  20  40   60  80  100  120  140 

Total 
(Average ) 

154 

• 

§20,892,764 

$463,940 

$2.22 

1 

100.0 

! 
i 

1 

Total 
(Avenge ) 

Under  $40 
$40  to  §80 
$80  to  $180 

$180  t  over 

14 
57 
58 
25 

428,714 

3,222,458 

6,866,815 

10,374,767 

6,262 

42,797 
140,074 
274,807 

1.46 
1.33 
2.04 
2.65 

65.8 
59.9 
91.9 

119.4 

i 

Total 
(Average ) 

115 

10,005,585 

164,710 

1.65 

74.3 

i 

Under 
40 

Under  $40 
$40  to  $80 
$80  to  $130 

$100  ti   over 

14 

51 

44 

6 

428,714 
2,836,747 
5,255,410 
1,484,714 

6,262 
37,636 
95,437 
25,355 

1.46 
1.33 
1.82 
1.71 

65.8 
59.9 
82.0 
77.0 

I 

i 

Total 
(Average) 

39 

10,837,179 

299,230 

2.75 

123.9 

i 

40  and 
over 

Under  $40 
$40  to  $80 
$80  to  $lo0 

$180  U   over 

6 
14 
19 

335,721 
1,611,405 
8,300,053 

5,141 

44,637 

249,452 

1.33 
2.77 
2.81 

69.9 
124.8 

126.6 

tveraga  $2.22 


316 


TABLE  223 

TOTAL  NET   SALES,   ADVERTISING,   AND   AMOUNT   OF  ADVERTISING  PER  $100   OF   TOTAL 
NET  SALES,  FOR  154  STORES  CLASSIFIED  BY  SIZE  OP  CITY  AND  STORE,  1918 


Size 
of 

Classified 

Total 
Net  Sales 
(in  OOO's) 

Bomber 

of 
Stores 

Total 
Bet  Sales 

Total 
Advertising 

Advertising  per  ♦lOO  of  Total  Het  Sales 

Ajnotdt 

Per  Cent. 

(la  ooo'b) 

Qraphic          I  Actual 
0   20   40   60   80  100  120  140 

Total 
(Average ) 

154 

♦14,714,515 

♦326,047 

$2.22 

100.0 

i 

VotaJ 
(Average) 

Under  |40 
|40  te  |80 
♦80  to  ♦180 

#180  at  over 

42 

63 
35 
14 

1,256,795 
3,662,794 
4,090,203 
5,704,723 

19,197 

60,416 

98,491 

147, 943 

1.53 
1.65 
2.41 
2.59 

68.9 

108.6 
116.7 

i 

Total 
(Average) 

105 

7,136,283 

125,986 

1.77 

79.7 

^^^_" 

ttader 
40 

Itader  #40 
♦40  te  ♦so 
♦80  te  ♦l80 

♦180  &  over 

41 

49 

22 

S 

1,221,199 

2,776,272 

2,504,412 

634,400 

19,129 
43,829 
52,779 
10,249 

1.57 
1.58 
2.U 
1.62 

70.7 

7i.a 

95.0 
73.0 

■ 

Total 
(Average) 

S9 

7,578,232 

200,061 

2.64 

118.9 

i 

40  Bad 
over 

Itader  ^40 
♦40  to  ♦eo 

♦so  to  f 180 
$180  &  over 

1 
14 
13 
11 

35,596 

886,522 

1,685,791 

5,070,323 

68 

16,587 

45,712 

137,694 

0.19 
1.87 
2.88 
2.72 

8.6 

84.2 

129.7 

122.5 

: 

Averags,  ♦2.22 


"under  $40,000,  the  advertising  expen- 
ditures constitute  a  larger  proportion 
of  selling  expense  for  the  stores  in 
the  small  than  for  those  in  the  large 
cities,  while  for  stores  with  sales  in 
excess  of  this  amount,  an  inverse  con- 
dition obtains. 

Tables  226  to  228,  inclusive,  contain 
the  data  for  the  years  1919,  1918,  and 
1914,  respectively.  From  year  to  year 
for  stores  of  different  size  and  loca- 
tion, the  advertising  expenditures 
vary  in  amount  and  in  direction  of 
change.     The  nature  of  these  varia- 


tions is  evident  from  the  detail  of 
the  tables. 

Tables  221  to  228,  inclusive,  may 
be  summarized  as  follows :  First,  ad- 
vertising expenditures  per  $100  of 
total  net  sales  increase  as  stores  in- 
crease in  size  when  no  account  is 
taken  of  location.  When  stores  of 
varying  size  and  location  are  com- 
pared, expenditures  for  advertising 
remain  essentially  constant  for  stores 
of  different  size,  located  in  small 
cities,  but  increase  with  the  size  of 
stores  for  stores  in  the  large  cities. 


317 


Second,  advertising  expenditures  per 
$100  of  selling  expense  increase  as 
stores  increase  in  size.  When  stores 
are  classified  by  size  and  by  location, 
however,  the  amounts  for  the  stores 
in  the  small  cities  decrease,  and  for 
those  in  the  large  cities  increase,  as 
stores  increase  in  size.  Certain  ex- 
ceptions to  this  tendency  occur  in 
each  of  the  different  years  under  con- 
sideration. These,  however,  do  not 
seriously  disturb  the  general  conclu- 
sions which  have  been  drawn. 


E. — Summary. 

(1),  The  amounts  spent  for  adver- 
tising per  $100  of  total  net 
sales  decreased  between  1914 
and  1918,  and  remained  con- 
stant between  1918  and  1919. 
This  condition  holds  for  the 
154  stores  as  a  whole.  For 
those  w'ith  sales  less  than 
$180,000,  the  amounts  de- 
creased from  year  to  year; 
while    for    those    with    sales 


TABLE  224 

TOTAL   NET   SALES,   ADVERTISING,   AND  AMOUNT   OF   ADVERTISING  PER  $100   OF  TOTAL 
NET  SALES,  FOR  154  STORES  CLASSIFIED  BY  SIZE  OF  CITY  AND  STORE,  1914 


81  to 

of 
City 

Claselfled 

Total 
Ket  Sales 
(In  OOO'b) 

number 

of 
Storee 

Total 
Bet  Sales 

Total 

Advertising 

Advertising  per  $100  of  Total  Net  Sales 

Per  Cent. 

(In  OOO'b) 

Amount 

Graphic         |  Actual 
)  20  40   60  80  100  120  140 

Total 
(Average) 

154 

19,228,220 

1240,682 

|2.61 

100.0 

Total 
(Average) 

Under  ^ 
UO   to  |80 

♦80  to  tieo 

$180  k   over 

73 

52 

24 

5 

1,905,044 

2,889,745 
2,738,621 
1,694,810 

55,513 
64,433 
81,138 
69,598 

1.86 
2.25 
2.96 
3.52 

71.3 

85.4 

113.4 

134.9 

Total 
(Average) 

US 

4,777,138 

98,543 

2.06 

78.9 

1 

Under 
40 

Under  Uo 
♦40  to  $80 
|80  to  4180 

llBO  fc  over 

66 
38 
11 

1,667,425 
2,037,513 
1,072,200 

'30,737 
40,820 
26,986 

1.84 
2.00 
2.52 

70.5 
76.6 
96.6 

; 

1 

1 

Total 
(Average ) 

39 

4,451,082 

142,139 

3.19 

122.2 

Under  $40 
$40  to  $80 

7 
14 
13 

5 

237,619 

852,232 

1,666,421 

1,694,810 

4,776 
23,613 
54,152 
59,698 

2.01 
2.77 
3.25 
3.52 

77.0 
106.1 
124.5 
134.9 

40  end 
over 

; 

«lon  1.  „...-   1 

1 

Average  $2.61 


318 


TABLE  225 

TOTAL   SELLING  EXPENSE,   ADVERTISING,   AND  AMOUNT  OF  ADVERTISING   PER  $100   OP 

SELLING   EXPENSE,    FOR    154   IDENTICAL    STORES    CLASSIFIED    BY    SIZE 

OF  CITY  AND  STORE,  1919,  1918,  AND  1914,  COMBINED 


Classified 

Total 
Net  Sales 
(In  OOo'b) 

Number 

of 
Store- 
years 

Total 
SelUng 
£xpense 

Total 
Advertising 

Advertising  per  $100  of  Selling  Expenaa 

Size 

of 

City 

(In  OOO's) 

Per  Cent. 

)  20  40  60  80  100  120 

Total 
(Average) 

462 

$4,861,112 

$1,030,669 

$21.25 

100.0 

Under  $40 
$40  to  $80 
$80  to  $180 

$180  &  over 

129 

172 

117 

44 

304,954 

913,357 

1,491,801 

2,141,000 

60,972 
167,646 
319,703 
482,348 

19.99 
18.35 
21.43 
22.53 

94.1: 

86.4 
100.8 
106.0 

Total 

j 

(Average) 

• 

Total 
(Aver age) 

345 

2,061,362 

389,239 

18.88 

88.8 

i 

Uhder  $40 
$40  to  $80 
$80  to  $180 

&180  &  over 

121 

138 

77 

9 

276,723 
670,140 
892,563 
221,936 

56,128 
122,305 
175,202 

35,604 

20.28 
18.25 
19.63 
16.04 

95 .4 
85.9 
92.4 
75.5 

Under 
40 

! 

; 

Total 
(Average ) 

117 

2,789,760 

641,430 

22.99 

108.2 

i 

Under  $40 
$40  to  $80 
$80  to  $180 

$180  ae  over 

8 
34 

40 
35 

23,231 

243,217 

599,238 

1,919,064 

4,844 

45,341 

144,501 

446»744 

17.16 
18.64 
24.11 
29.28 

80.8 

87.7 

113.6 

109.6 

40  and 
over 

; 

Average  $21.25 


of  $180,000  and  over,  the 
amounts  decreasecJ  between 
1914  and  1918,  and  increased 
between  1918  and  1919. 

(2).  The  proportion  of  selling  ex- 
pense attributable  to  adver- 
tising decreased  between  1914 
and  1918.  This  holds  for  all 
stores,  as  well  as  for  stores 
classified  by  size.  Between 
1918  and  1919,  the  amount 
for  all  stores  increased.    The 


direction  of  change  from  year 
to  year  was  not  uniform  for 
stores  classified  by  size. 

(3).  Advertising  in  terms  of  either 
sales  or  selling  expense  de- 
creased by  a  larger  percent- 
age between  1914  and  1919, 
and  by  a  smaller  percentage 
between  1914  and  1918  for 
stores  in  small  than  it  did  for 
those  in  large  cities. 


319 


TABLE  226 

TOTAL  SELLING  EXPENSE,   ADVERTISING,   AND   AMOUNT  OF   ADVERTISING  PER   $100   OF 
SELLING  EXPENSE,  FOR  154  STORES  CLASSIFIED  BY  SIZE  OF  CITY  AND  STORE,  1919 


ClBBslfled 

Total 
Hot  Sales 
(In  OOO'e) 

Number 

of 
Stores 

Total 
SallJng 
Expense 

Advertising 

Advertising  per  $100  of  Selling  Expense 

size 

of 

City 

(In  OOO's) 

Amount 

C 

Per  Cent. 

<^^P*'^<=          Actual 
)  20  40   60   80  100  120 

Total 
(Average ) 

154 

$2",  182,  027 

$463,940 

$21.26 

loa^ 

Undor  $40 
$40  to  $80 
$60  to  $180 

$180  &  over 

14 
57 
58 
25 

29,018 

246,207 

719,436 

1,187,566 

6,262 

42,797 

140,074 

274,807 

21.58 
17.58 
19.47 
23.14 

101.5 
81.7 
91.6 

ioe.8 

Total 
(Average) 

Total 
(Average ) 

115 

896,863 

164,710 

18.57 

86.4 

Under  $40 
$40  to  $80 
$80  to  $180 

$180  &  over 

14 

51 

44 

6 

29,018 

211,678 
509,410 
146,757 

6,262 
37,656 
95,437 
25,356 

21.58 
17.79 
18.73 
17.28 

101.5 
83.7 
88.1 
81.9 

T3Vider 
40 

Total 
(Average) 

S9 

1,285,164 

299,230 

23.28 

109.5 

40  and 
over 

Under  $40 
$40  to  $80 
$80  to  $180 

$180  &  over 

6 
14 
19 

54,529 

210,026 

1,040,609 

5,141 

44,637 

249,452 

14.89 
21.25 
23.97 

70.0 
100.0 
112.7 

Average  $21.26 


(4).  The  amounts  of  advertising 
expenditure  per  $100  of  total 
net  sales  for  all  stores  and  for 
those  located  in  large  cities 
increase  as  stores  increase  in 
size,  while  they  remain  prac- 
tically constant  for  stores  in 
small  cities. 

(5).  For  stores  of  a  given  size, 
advertising  expenditures  in 
terms  of  sales  are  higher  in 
large  than  in  small  cities. 

(6).    The    proportions    of    selling 


(7). 


expense  attributable  to  adver- 
tising increase  with  the  size 
of  store  for  all  stores  and  for 
those  located  in  large  cities, 
while  they  decrease  as  the 
stores  increase  in  size  for 
stores  in  small  cities. 

For  stores  of  given  size,  the 
amounts  of  advertising  ex- 
penditure per  $100  of  selling 
expense  are  generally  higher 
in  large  cities  than  for  stores 
in  small  cities. 


320 


TABLE  227 

TOTAL   SELLING  EXPENSE,   ADVERTISING,    AND   AMOUNT   OF   ADVERTISING  PER  $100  OF 
SELLING  EXPENSE,  FOR  154  STORES  CLASSIFIED  BY  SIZE  OF  CITY  AND  STORE,  1918 


Classified 

Total 
Net  Sales 
(In  OOO's) 

Number 

of 
Stores 

Total 
Balling 
Expense 

Total 
Advertising 

Advertising  par  $100  of  Selling  Expense 

of 

city 

Amount 

Per  Cent. 

<ln  OOO'e) 

Graphic          Actual 
5  20  40   60  80  100  120  140 

Total 
(Average) 

154 

$1,609,671 

$526,047 

$20.26 

100.0 

Under  $40 
$40  to  $80 
$80  to  $180 

$180  8c  over 

42 
63 
35 
14 

101,621 
545,293 
445,138 
717,619 

19,197 

60,416 

98,491 

147,943 

18.89 
17.50 
22.13 
20.62 

93.2 
86.4 
109.2 
101.8 

Total 

CAverage) 

Total 
(Average) 

lis 

680,787 

125,986 

18.51 

91.4 

I 

Under  $40 
$40  to  $80 

$80  io   $180 
$180  &  over 

41 

49 

22 

3 

99,515 
244,788 
261,507 

75,179 

19,129 
45,829 
52,779 
10,249 

19.82 
17.90 
20.20 
13.63 

94.9 
68.4 
99.7 
67.5 

40 

Total 
(Average) 

59 

928,884 

200,061 

21.54 

106.5 

- 

«0  and 

Under  $40 
$40  to  $80 
$80  to  $1S0 

$180  fc  over 

1 
14 
13 
U 

2,108 
100,505 
183,851 
642,440 

68 

16,587 

46,712 

157,694 

S.25 
16.50 
24.87 
21.45 

15.9 

81.4 

122.8 

105.8 

ever 

Avec&KO  $20.26 


2. — YEARLY  AMOUNTS  OF  EXPENDITURE 
FOR  ADVERTISING  IN  RELATION  TO 
THE  AMOUNTS  OF  STOCK  CARRIED, 
FOR  STORES  CLASSIFIED  BY  YEARS, 
BY  SIZE,  AND  BY  RATES  OF  STOCK 
TURNOVER. 

On  pages  53  to  85,  and  204  to 
226,  respectively,  the  amounts  of 
selling  expense  and  of  wages  and 
salaries  were  discussed  for  stores 
classified  by  the  amounts  of  stock 
carried.  In  this  section,  expenditures 
for  advertising  are  similarly  treated. 


A. — Yearly  Amounts  of  Expenditure 
for  Advertising  per  $100  of  Total 
Net  Sales  and  per  $100  of  Selling 
Expense,  1919,  1918,  and  1914. 

For  the  study  of  the  amounts  of 
advertising  expenditure  per  $100  of 
total  net  sales  in  relation  to  the  size 
of  inventories,  the  records  of  149 
stores  are  available  for  the  years  1914, 
1918,  and  1919.  The  amounts  are 
contained  in  Table  229.  For  the 
combined  years,  the  stores  which  had 
inventories  less  than  $20  per  $100  of 


321 


TABLE  228 

TOTAL  SELLIXG  EXPENSE,   ADVERTISING,   AND  AMOUNT   OF   ADVERTISING  PER  $100   OF 
SELLING  EXPENSE,  FOR  154  STORES  CLASSIFIED  BY  SIZE  OF  CITY  AND  STORE,  1914 


ClaBslfled 

Total 
Net  Sales 
(In  OOO'b) 

Mumbar 

of 
Stores 

Total 

Selling 
Expense 

Total 
Advertising 

Advertising  per  $100  of  Selling  Expense 

Slza 
of 

Amount 

Per  Cent. 

(In  coo's) 

Oraphlo                      Actual 
0      20      40      60     80   100   120 

Total 
(Average ) 

154 

$1,059,414 

$240,682 

$22.72 

lOO.O 

^^^^^^^ 

Dnder*^ 
^  to     $80 
|80  to  |180 

$180  k  over 

73 

&2 

24 

5 

174,315 
321,857 
327,227 
236,015 

35,513 
64,433 
81,138 
59,598 

20.37 
20.02 
24.80' 
25.25 

89.7 

88.1 

109.2 

lU.l 

Total 

(Average) 

1 

1 

Total 
(Average) 

US 

483,712 

98,543 

20.37 

89.7 

1 

tftider 
40 

Dfader  t40 
$40  to    $80 
♦80  to  $180 

♦l80  *  over 

66 
38 
U 

148,192 
813,674 
121,846 

30,737 
40,820 
26,986 

20.74 
19.10 
22.15 

91.3 
84.1 
97.5 

• 

t 
1 

Total 
(Average) 

39 

675,702 

142,139 

24.69 

108.7 

Under  |40 
$40  to     $80 
$80  to  $180 

$180  4  over 

7 

14 

13 
5 

26,123 
108,183 
205,381 
236,015 

4,775 
23,613 
54,152 
59,593 

18.28 
21.83 
26.37 
25.25 

80.S 

96.1 

U6.1 

lU.l 

40  and 

> 

over 

Average  $22.72 


total  net  sales  spent  $1.78  for  adver- 
tising in  terms  of  sales.  This,  like  the 
amounts  of  total  selling  expense  and 
wages  and  salaries  for  this  group  of 
stores,  is  relatively  small.  For  the 
stores  which  had  inventories  between 
$20  and  $40  per  $100  of  total  net 
sales,  the  advertising  expenditure  was 
$2.47.  From  this  figure  as  a  maxi- 
mum, the  expenditures  decrease  to 
$1.94  for  the  stores  which  had  inven- 
tories of  $60  and  over.  That  is,  if 
exception  is  made  for  stores  with  in- 
ventories of  less  than  $20,  expendi- 


tures for  advertising  for  the  stores  in 
the  combined  years  decrease  as  the 
inventories  in  relation  to  sales  in- 
crease. A  similar  relationship  obtains 
in  each  of  the  different  years. 

For  the  149  stores  in  1914,  the  aver- 
age amount  of  expenditure  for  adver- 
tising per  $100  of  total  net  sales  was 
$2.63.  In  1918  it  was  $2.23  and  in 
1919,  $2.24.  That  is,  there  was  a 
decrease  between  1914  and  1918  and 
a  slight  increase  between  1918  and 
1919.  With  the  exception,  in  each  of 
the  years,  of  the  stores  which  had  the 


322 


lowest  inventories,  the  amounts  of 
advertising  expenditure  decreased  be- 
tween 1914  and  1918,  and  1918  and 
1919.  It  is  this  comparison  which  is 
of  most  significance,  the  totals  for  the 
respective  years  being  affected  by  the 
amounts  of  the  sales  and  by  the  size 
of  the  inventories  in  relation  to  sales. 
When  the  amounts  of  expenditure 
for  advertising  per  $100  of  sales  for 
stores  with  inventories  of  different 
size  are  reduced  to  a  common  basis 


by  expressing  them  in  terms  of  the 
amount  sold  per  $1  of  inventory,  they 
increase,  in  the  combined  years,  from 
$0.31  for  the  stores  with  smallest,  to 
$1.36  for  the  stores  with  largest  rela- 
tive inventories.  Similar  increases 
occur  in  each  of  the  years  considered. 
The  inverse  relationship  between 
the  average  amount  of  inventory  per 
$100  of  total  net  sales  and  the  average 
amount  of  advertising  expenditure, 
similarly  measured,  is  shown  in  Table 


TABLE  229 

AMOUNT  OF  ADVERTISING  PER  $100  OF  TOTAL  NET  SALES  PER  AMOUNT  SOLD  PER  $1 

OF    INVENTORY,    FOR    149    IDENTICAL    STORES    CLASSIFIED    BY    AMOUNT    OP 

INVENTORY  PER  $100  OF  TOTAL  NET  SALES,  1919,  1918,  AND  1914 


itasowtt  of 

Inventory 

per  $100  of 

Total 

Vet  Sale* 

Sumber 

of 
Store- 
yeara 

Advertising  per  $100  of  Total  Net  Salea 

Advertising  per  JlOO  of  Total  Net  Sales  per 
Amount  Sold  per  $1  of  Inventory 

Xaort 

Per  Cent. 

Amount 

c 

Per  Cent. 

Amovoat 

t 

Oraphle                       1 

^                           1    Actual 
20      40      60      80   100   120   140 

""^'^                          1     Actual 
20     40      60      80   100   120   140   160 

Total 
(Average) 

447 

$2.32 

100.0 

$0.B7 

100.0 

^^H 

Uhder  $20 
$20  to  $40 
$40  to  $60 
$60  Ji  over 

14 
168 
177 

68 

1.78 
2.47 
2.16 
1.94 

76.7 
106. E 
93.1 

83.6 

0.31 
0.74 
1.08 
1.36 

35. 6 

(Avsraga ) 

8S.I 
124.1 

156.3 

^^^^M       ■ 

Total 
(Average ) 

149 

2.24 

96.6 

0.73 

83.9 

^^^^ 

(Jnder  $20 
$20  to  $40 
$40  to  $60 
$60  i  over 

7 
83 
51 

8 

2.00 
2.32 
2.02 
1.72 

86.2 
100.0 
87.1 
74.1 

O.JS 
0.70 
1.01 
1.20 

40.2 
80. S 

116.1 
137.9 

1919 

1 

..^ 

: 

Total 
(Average) 

149 

2.23 

96.1 

0.90 

103.4 

^^^^1 

- 

1918 

UQdar  $20 
$20  to  $40 
$40  to  $60 
$60  k  over 

3 
46 
60 
40 

C.93 
2.43 
2.17 
1.94 

40.1 
104.7 
93.5 
83.6 

0.16 
0.73 
1.09 
1.36 

18.4 
83.9 
125.3 
156.3 

; 

; 

1 

Total 
(Average) 

149 

2.63 

113.4 

1.14 

131.0 

Dmler  $20 
$20   to  $40 
$40  to  $60 
$60  fc  over 

4 
39 
66 
40 

2.35 
3.14 
2.32 
?.00 

101.3 
135.3 
100.0 
66.2 

0.41 
0.94 
1.16 
1.40 

47.1 
108.0 
133.3 
160.9 

1914 

■■ 

I     _. . 

Average  $2.32 


Average  $0.87 


323 


230.  For  the  combined  years,  stores 
which  spent  less  than  $1  in  adver- 
tising in  terms  of  sales  had  on  the 
average  an  inventory  of  $40.94.  The 
amount  of  inventory  for  those  which 
spent  between  $1  and  $2  was  slightly 
larger,  and  for  those  that  spent  more, 
considerably  less  than  this  amount. 
When   the   separate   years   are    con- 


sidered, the  inventories,  with  a  few 
exceptions,  decrease  as  the  amounts 
spent  for  advertising  per  $100  of 
total  net  sales  increase.  The  average 
amount  of  inventory  for  the  stores  in 
the  combined  years  is  $37.54.  For 
1914  it  was  $43.44,  for  1918,  $40.53, 
and  for  1919,  $32.84.  That  is,  the 
inventories   decreased  between   1914 


TABLE  230 

TOTAL  NET  SALES,  INVENTORY,  AND  AMOUNT  OF  INVENTORY  PER  $100  OF  TOTAL  NET 

SALES,  FOR  149  IDENTICAL  STORES  CLASSIFIED  BY  AMOUNT  OF  ADVERTISING 

PER  $100  OP   TOTAL   NET  SALES,    1919,    1918,   AND    1914 


Amount  of 

Advertising 

per  |100  of 

Total 

net  Sales 

number 

of 
Store- 
years 

Total 
Net  Sales 

Total 
Inventory 

Inventory  per  llOO  of  Total  Het  Sales 

Years 

Amount 

Per  Cent. 

1  Aetufll 
3   20  40   60  80  100  120  140 

Total 
(Average) 

447 

143,599,972 

$16,369,406 

♦37.54 

100.0 

Under  $1 
»1  to  »2 
$2  to  tS 
|3  i  over 

105 
147 
114 

61 

6,153,722 
10,474,625 
15,040,118 
11,951,507 

2,519,091 
4,359,751 
6,161,173 
4,320,391 

40.94 
41.62 
34.32 
36.29 

109.1 

110.9 

91.4 

96.7 

Total 

(Average ) 

i 

1 

Total 
(Average ) 

149 

20,303,641 

6,667,056 

32.84 

67.5 

^^^^   1 

Under  $1 
♦l  to  |2 
|2  to  $3 
Is  &  over 

41 

47 
42 
19 

3,106,729 
4,460,395 
8,386,889 
4,349,628 

1,135,040 
1,634,516 
2,491,097 
1,406,403 

36.53 
36.65 
29.70 
32.33 

97.3 
97.6 

1919 

i 

; 

: 

86.1 

Total 
(Average) 

149 

14,322,667 

5,804,340 

40.53 

108.0 

i 

Under  |l 
ll  to  |2 
♦2  to  $3 
|3  fc  over 

se 

49 
38 
24 

2,156,926 
3,542,012 
4,480,247 
4,143,482 

963,421 
1»  469,  279 
1,736,775 
1,614,865 

45.59 
41.48 
38.77 
38.97 

121.4 
110.5 
103.3 

191B 

1 

Total 
(Average) 

149 

8,973,664 

3,898,010 

43.44 

115.7 

under  11 
ll  to  »2 
|2  to  |3 
Is  &  over 

26 
61 
34 

se 

690,067 
2,472,218 
2,172,982 
3,438,397 

400,630 
1,265,956 

933,301 
1,308,123 

45.01 
50.80 
42.95 
38.04 

119.9 
135.5 

1914 

101.3 

Average  |37.54 

324 


TABLE  231 

TOTAL  SELLING  EXPENSE,   ADVERTISING,   AND   AMOUNT  OF   ADVERTISING   PER  $100   OF 

SELLING  EXPENSE,   FOR   149   IDENTICAL  STORES   CLASSIFIED   BY    AMOUNT   OF 

INVENTORY  PER  $100  OF  TOTAL  NET  SALES,  1919,  1918,  AND  1914 


Amount  of 

Inventory 

per  $100  of 

Total 

Not  Sales 

Number 

of 
Store- 
years 

Total 
Salllug 
Expense 

Total 
Advertising 

Advertising  per  $100  of  Selling 
Expense 

Tears 

Amoimt 

Per  Cent. 

Graphic         ^^^,„^ 
3  20  40  6p  80  100  1:^0 

Total 
(Average ) 

447 

$4,745,829 

$1,009,377 

$21.27 

: 

100.0 

: 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

14 
168 
177 

88 

172,900 
3,088,085 
1,128,967 

355,877 

36,654 
655,340 
243,739 

73,644 

21.20 
21.22 
21.59 
20.69 

99.7 

99.8 

lOl.S 

97.S 

Total 

(Average ) 

j 

Total 
(Average ) 

149 

2,135,072 

453,840 

21.26 

100.0 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  le  over 

7 
85 
51 

8 

105,  7U 

1,649,518 

345,965 

33,878 

24,173 

348,645 

73,301 

7,721 

22.87 
21.14 
21.19 
22.79 

107.5 
99.4 
99.6 

107.1 

1919 

! 

Total 
(Average) 

149 

1,073,249 

319,845 

20.33 

15.44 
19.53 
22.29 
20.75 

95.6 

i 

1918 

Dhder  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

5 
46 
60 
40 

32,117 
937,441 
427, 462 
176,229 

4,960 

183,038 

95,288 

36,559 

72.6 

91.8 

104.8 

97.6 

Total 
(Average) 

•  149 

1,037,608 

235,692 

22.72 

106.8 

i 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  fc  over 

4 
39 
66 
4* 

35,072 
501,126 
355,540 
145,770 

7,521 

123,657 

75,150 

29,364 

21.44 
24.68 
21.14 
20.14 

100.8 

116.0 

99.4 

94.7 

1914 

: 

Average  $21.27 


and  1918,  and  1918  and  1919,  the 
margin  of  difference  between  1918 
and  1919  being  2.6  times  as  great  as 
between  1914  and  1918. 

In  Table  231,  for  the  same  stores  as 
those  considered  in  Tables  229  and 


230,  the  average  amounts  of  adver- 
tising expenditures  are  expressed  as 
proportionate  parts  of  selling  expense. 
For  the  stores  in  the  combined  years, 
the  average  is  $21.27.  In  1914  it  was 
$22.72,  in  1918,  $20.33,  and  in  1919, 


325 


$21.26.  For  the  stores  in  the  com- 
bined years  and  in  1919  and  1914, 
the  amounts  per  $100  of  selling  ex- 
pense remain  essentially  constant  as 
inventories  in  relation  to  sales  in- 
crease.* Approximately  $21  might  be 
said  to  be  the  characteristic  amount. 
From  Tables  229  to  231,  inclusive, 
it  may  be  concluded:  First,  if  the 
stores  with  smallest  inventories  in 
relation  to  sales  are  excepted,  the 
amounts  of  advertising  expenditure 
per  $100  of  total  net  sales  decrease 
as  the  amounts  of  inventories  per 
$100  of  total  net  sales  increase. 
Second,  the  amounts  of  advertising 
expenditure  per  $100  of  selling  ex- 
pense are  essentially  constant  for 
stores  having  different  amounts  of 
inventory  in  relation  to  sales.* 

B. — Yearly  Amounts  of  Expenditure 
for  Advertising  per  $100  of  Total 
Net  Sales  and  per  $100  of  Selling 
Expertise,  for  Stores  Classified^  hy 
Size,  1919,  1918,  and  1914. 

In  the  foregoing  tables,  the  stores 
are  not  classified  according  to  size. 
Such  a  classification  is  made  in 
Tables  232  to  235,  inclusive. 

In  Table  232  the  amounts  of  ad- 
vertising expenditure  are  shown  for 
stores  in  the  three  years  1914,  1918, 
and  1919,  combined.  On  the  basis  of 
the  experience  of  447  store-years,  the 
average  amount  spent  for  advertising 
per  $100  of  total  net  sales  is  $2.32, 

*  For  a  somewhat  larger  number  of  stores, 
and  with  wider  groupings  of  inventories  in 
relation  to  sales,  as  shown  in  Table  246,  the 
amounts  decrease,  as  inventories  in  relation 
to  sales  increase  in  size.  The  same  condi- 
tion tends  to  hold  for  the  stores  in  1914. 


For  those  with  sales  under  $40,000, 
it  is  $1.67;  for  those  with  sales  of 
$40,000  to  $80,000,  $1.69;  for  those 
with  sales  of  $80,000  to  $180,000, 
$2.39 ;  and  for  those  with  sales  of 
$180,000  and  over,  $2.72.  That  is, 
the  amounts  increase  as  the  size  of 
the  stores  increases.  "When  the  stores 
are  classified  by  size,  and  further  by 
the  amounts  of  inventory  per  $100  of 
total  net  sales,  expenditures  for  ad- 
vertising generally  tend  to  increase 
as  the  inventories  per  $100  of  total 
net  sales  increase.  However,  to  this 
general  rule  for  the  stores  in  the 
combined  and  in  the  different  years, 
there  are  so  many  exceptions  that  it 
is  difficult  to  generalize.  The  reader 
is  advised  to  consult  the  tables  for 
the  direction  of  change  for  the  dif- 
ferent groups  of  stores. 

In  Tables  233  to  235,  inclusive,  the 
amounts  of  advertising  expenditure 
per  $100  of  total  net  sales  are  shown 
for  stores  classified  as  in  Table  232 
for  the  years  1919,  1918,  and  1914, 
respectively.  It  is  unnecessary,  in 
view  of  the  consideration  already 
given  to  expenditures  for  advertising 
for  the  combined  years,  to  consider 
these  tables  in  detail.  Year  to  year 
comparisons  of  the  total  amounts 
have  already  been  made  and  an  in- 
spection of  the  tables  will  show  how 
the  amounts  vary  for  the  stores  of 
different  size  in  each  of  the  years. 
In  a  general  way,  the  relationships 
which  obtain  in  the  combined,  also 
hold  for  the  individual  years. 

In  Tables  232  to  235,  inclusive, 
advertising  expenditures  are  ex- 
pressed in  terms  of  sales  alone.     In 


326 


TABLE  232 

TOTAL   NET  SALES,   ADVERTISING,   AND  AMOUNT   OF  ADVERTISING   PER  $100   OF   TOTAL 

NET    SALES,    FOR    149    IDENTICAL    STORES    CLASSIFIED    BY    SIZE    AND   BY 

AMOUNT  OF  INVENTORY  PER  $100  OF  TOTAL  NET  SALES, 

1919.     1918,     AND     1914,     COMBINED 


Claasiried 

A-nount  of 

Inventory 

per  $100  of 

Total 

»et  Saleo 

Number 

of 
Store- 
7ear> 

Total 
Net  Sales 

Total 
AdvertlBlng 

Adi/irtlslng  per  $100  of  Total  Net  Sales 

Total 
Net  Sales 
(In  000' ») 

Amount 

Per  Cent. 

Qraphle                           Actual 
0   20   40   60   80  100  120  140 

Total 
(Average) 

447 

$43,599,972 

$1,009,377 

$2.32 

100.0 

Total 

(Average) 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  le  over 

14 
168 
177 

88 

2,059,425 
26,478,436 
U,  263. 282 

3,798,829 

36,654 
665,340 
243,739 

73,644 

1.78 
2.47 
2.16 
1.94 

76.7 
106.5 

: 

Total 
(Average ) 

127 

3,532,911 

69,024 

1.67 

0.79 
1.69 
1.85 
1.52 

72.0 

ttider  $40 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  k   over 

X 
18 
E2 
56 

28,953 

560,460 

1,412,525 

1,530,993 

228 

9,477 

26,112 

23,207 

94.1 
72.8 
79.7 
65. 5 

i 

1 

Total 
(Average) 

165 

9,360,348 

168,486 

1.69 

72.8 

$40  to  $eo 

Dbder  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

6 
52 

82 
2S 

402,009 
3,083,049 
4,458,869 
1.416,421 

4,904 
54,480 
74,251 
24,851 

1.22 
1.77 
1.67 
1.75 

52.6 
76.3 
72.0 
75.4 

Total 
(Average) 

Dbder  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

112 

6 
60 
40 

7 

13,121,494 

313,119 

2.39 

1 
• 

$80  to  $180 

655,107 
7,076,841 
4,638,131 

851,415 

6,305 
156,342 
122,886 
25,586 

l.SO 
2.21 
2.65 
3.01 

64.7 

95.S 

U4.8 

129.7 

Total 
(Average ) 

43 

17,585,219 

478, 743 

2.72 

U7.2 

i 

Ubder  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

2 
58 
S 

1,073,376 

15,758,086 

753,767 

23,217 

435,041 

20,490 

2.16 
2.76 
2.72 

93.1 
119.0 
117.2 

$180  tc  over 

; 

Average  $2.33 


327 


Table  236  they  are  expressed  in  terms 
of  sales  for  the  amount  sold  per  $1 
of  inventory.* 

*  The  method  by  which  this  unit  is  com- 
puted is  explained  on  page  4,  item  17. 


For  the  stores  in  the  combined 
years,  $0.87  was  expended  for  adver- 
tising per  $100  of  total  net  sales  for 
the  amount  sold  for  each  $1  of  in- 
ventory.    In  1914  the  corresponding 


TABLE  233 

TOTAL  NET  SALES,  ADVERTISING,  AND  AMOUNT  OF  ADVERTISING  PER  $100   OP  TOTAL 

NET  SALES,  FOR   149   STORES  CLASSIFIED  BY  SIZE   AND  BY  AMOUNT  OF 

INVENTORY    PER    $100    OF    TOTAL    NET    SALES,     1919 


Cl*aalfi«il 

Totaa 
list  SaJss 
(in  OOO'fl) 


Amount  of 

Inventory 

per  $100  of 

Total 

Het  Balsa 


Hombsr 

of 
Storaa 


Total 
Advsrtlslog 


Advertlalng  per  |100  of  Total  Net  Sales 


Oi'spl^o  Actual 

0  20  40  60  80  100  120  140  160 


total 
(Average) 


Total 
(ATerage ) 

Uodor  $20 
(20  to  (40 
(40  to  (60 
(60  i  over 


(20,303.641 


(453,840 


1,208,118 

lSi01S,367 

3,628,188 

448,968 


24, 175 

348,645 

73,301 

7,721 


Total 
(Average ) 


428,714 


Itadar  (40 


Under  (20 
(20  to  (40 
(40  to  (CO 
(63  k  over 


68,054 
244,012 

U6;64e 


6,262 

895 
4,334 

1,053 


Total 
(Average) 


5,082,152 


38,705 


(40  t«  (80 


Cnd^r  (20 
$20  to  (40 
^40  te  (80 

(60  b  oTer 


150,276 
1,287,723 
1,472,999 

171,154 


1,224 
le-,723 
19,317 

1,441 


too  to  (180 


6,607,089 


137,666 


384,466 
4,382,158 
1,679,299 

161«16e 


3,573 
84,725 
44,121 

6,247 


|1B0  k  OTer 


Total 
(Average) 

Dnder  (20 
(20  to  (40 
(40  to  (60 
(so  k  OTer 


10,185,686 

673,376 

9,280,432 

£31,878 


271,207 

19,376 

246,302 

6,529 


(2.24 


2.00 
2.32 
2.08 
1.72 


1.32 
1.78 
0.89 


1.26 


0.81 
1.30 
1.31 
0.84 


2.08 


O.0Z 
1.95 
2.65 
S.26 


2.66 

2.88 
2.65 
2.98 


100.0 


89.3 
103.6 
90.2 
76.8 


58.9 
79.6 
39.7 


S6.S 

36.2 
68.0 

58.5 
57.5 


92.9 


41.5 

86.2 
U7.4 
145.6 


118.8 

128.6 
118.9 
106.9 


Average  (2.24 


328 


TABLE  234 

TOTAL  NET  SALES,   ADVERTISING,   AND   AMOUNT   OF  ADVERTISING   PER  $100   OF   TOTAL 

NET  SALES,  FOR  149  STORES  CLASSIFIED  BY  SIZE  AND   BY  AMOUNT  OF 

INVENTORY    PER    $100    OF    TOTAL    NET    SALES,     1918 


Amount  of 

Inventory 

per  $100  of 

Total 

Het  Sales 

Humber 

of 
Stores 

Total 
Net  Salea 

Total 
Advertising 

Advertising  per  $100  of  Total  Net  Sales 

Classiflad 

Total 
Het  Salea 

Amount 

( 

Per  Cent. 

(in  OOO'b) 

Graphic 
)  20   40   60  80  100  120  140  160 

Actual 

Total 
(Avoraga) 

149 

$14,322,667 

$319,845 

$2.23 

100.0 

.      ,1        1 

Total 
(Average) 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

3 

46 
60 
40 

530.649 
7,517,748 
4,389,893 
1,884,377 

4,960 

183,038. 

95,288 

36,559 

0.93 
2.43 
2.17 
1.94 

41.7 

109.0 

97.3 

87.0 

: 

{ 
{ 

Total 
(Average ) 

42 

1,256,795 

19, 197 

1.53 

68.6 

ttadar  $40 

Dnder  $20 
$20  to  $40 
$40  to  $G0 
$60  k   over 

6 
13 
23 

209,528 
381,673 
665,594 

3,875 
6,486 
8,836 

1.85 
1.70 
1.33 

83.0 
76.2 
59.6 

t 

Total 
(Average ) 

60 

3,501,019 

57,778 

1.65 

74.0 

$40  to  $80 

Ondor  *20 
$20  to  $40 
$40  to  $60 
$60  !c  over 

2 

15 
29 

130,649 

901,852 

1,632,061 

836,457 

1,119 
15,355 
26,154 
15,150 

0.86 
1.70 
1.60 
1.81 

38.6 
76.8 
71.7 

ei.2 

Total 
(Average ) 

33 

3,860,130 

94,927 

2.46 

2.14 
2.57 
3.29 

110.3 

$30  to  $180 

Onder  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

14 

16 

3 

1,623,524 

1,854,280 

382,326 

54,667 
47,687 
12,573 

96.0 
115.2 
147.5 

1 

Total 
(Average) 

14 

5,704,723 

147,943 

2.59 

116.1 

$160  k  over 

Onder  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

I 
11 
2 

400,000 

4,732,844 

521,879 

3,841 
129,141 
14,961 

0.96 
2.70 
2.87 

43.0 
121.1 
128.7 

; 

Average  $2.23 

329 


TABLE  235 

TOTAL  NET  SALES,   ADVERTISING,  AND   AMOUNT   OF  ADVERTISING   PER  $100   OF   TOTAL 

NET  SALES,  FOR  149   STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT  OF 

INVENTORY    PER    $100    OF    TOTAL    NET    SALES,     1914 


Claaslflea 

Total 
>at  Sales 
(la  OOO'a) 


Anount  of 

Inventory 

per  $100  of 

Total 

Net  Sales 


Total 
Hot  Sales 


Total 
Advertising 


Advertising  per  4lOO  of  Total  Net  Sales 


Graphic 


Total 
(Average ) 


Onder  J 40 


ti'J   to  JSO 


Total 
(Average) 


$8,973,664 


$235, 692 


Under  $20 
|20  to  $40 
$40  to  $60 
$60  &.   over 


320,658 
9, 942, 321 
3,245,201 
1,465,484 


7,521 

123,657 

75,150 

29,364 


Total 
(Average) 


1,847,402 


33,565 


Under  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 


28, 933 
282,878 
786,840 
748,751 


228 

4,707 

15,292 

13,358 


Total 
(Average) 


2,777,177 


62,003 


Under  $20 
$20  to  $40 
$40  to  $60 
$60  fc  over 


121,084 

893,474 

1,353,609 

408,810 


2,561 
22,402 
28,780 

6,260 


Total 
(Average) 


2,654,275 


$80  to  $180 


Under  $20 
$20  to  $40 
$40  to  $60 
$60  St  over 


170,641 
1,071,159 
1,104,552 

307,923 


80,526 

4,732 
36,950 
51,078 

7,7^6 


Total 
(Average) 


1,694,610 


tl80  &  over 


Under  $20 
$20  to  $40 
$40  to  $60 
$60  fc  over 


1,694,810 


59,598 


69,598 


$2.63 


2.35 
3.14 
2.32 
2.00 


1.82 


0.79 
1.66 
1.94 
1.78 


2.23 

2.12 
2.51 
2.13 
2.02 


3.03 

2.77 
3.45 
2.81 
2.52 


100.0 

89.4 
119.4 
88.2 
76.0 


69.2 

30.0 

63.1 
73.8 
67.7 


84.8 


80.6 
95.4 
81.0 
76.6 


115.2 

105.3 

131.2 

106.6 

95.6 


Average  $2.63 


330 


TABLE  236 

AMOUNT  OF  ADVERTISING  PER  $100  OF  TOTAL  NET   SALES  PER  AMOUNT  SOLD  PER  $1 

OF  INVENTORY,  FOR  149  IDENTICAL  STORES  CLASSIFIED  BY  SIZE  AND  BY 

AMOUNT  OF  INVENTORY  PER  $100  OF   TOTAL  NET  SALES, 

1919,   1918,   AND   1914 


cu<«tn*4 

Total 
■•t  B»l»t 
(ta-ooo**) 


par  iyoo  of 

Total 
lat  Salaa 


Orapiilc 
»1 


par  11  of  Igveptory 


OrapMa 
to  tl  «2 


Oraphie 

»1  «2 


440  to  tao 


leo  to  tiso 


Dndop  »20 

0.31 

(20  to  (40 

0.74 

»40  to  S60 

1.08 

$60  it  OTor 

i.se 

Ooder  (20 

(20  to  (40 
(40  to  ttO 
(60  4  orar 


Osdar  (20 
(20  to  (40 
(40  to  (so 
(60  h  ovor 


Undor  (20 
(20  to  (40 
(40  to  (eo 

(60  t>  07sr 


JJbAut  (30 
(20  to  (40 
(40  to  (SO 

(60  •  oTor 


0.94 


0.14 
O.Sl 
0.9S 
1.06 


0.77 


O.Sl 

a.ss 

0.84 
1.23 


0.94 


0.26 
0.6S 
l.SS 


0.76 


0.3S 
0.63 
1.36 


&7araga  (0.87 


0.5S 
0.70 
l.Ol 
1.20 


0.40 

ces 

0.62 


0.S2 


0.14 
0.59 

0.66 
0,6S 


0.7S 


O.U 
0.56 
1.32 
Z.2S 


0.7S 


0.50 
0.80 
1.19 


ATcraga  (0.73 


0.16 
0.73 
1.09 
1.36 


0.56 
0.85 
0.93 


0.15 
O.Sl 
0.80 
1.27 


0.64 
1.29 
2.30 


0.17 
O.Sl 
1.44 


AToraee  (0.90 


(1.14 


0.41 
0.94 
1.16 


1.02 


0.14 

0.60 
0.97 
1.2B 


l.OO 


0.S7 
0.7S 
1.07 
1.41 


1.24 


0.48 
1.04 
1.41 
1.76 


Averago  (1.14 


amount  was  $1.14;  in  1918,  $0.90; 
and  in  1919,  $0.73.  That  is,  the 
amounts  decreased  from  1914  to  1918, 
and  1918  to  1919.  When  the  records 
of  the  stores  in  the  three  years  are 
combined,  the  amounts  spent  for  ad- 
vertising per  $100  of  sales  for  the 
amount  sold  per  $1  of  inventory, 
increase  as  the  inventories  per  $100 
of  total  net  sales  increase.     For  the 


stores  with  inventories  of  less  than 
$20  per  $100  of  total  net  sales,  the 
average  amount  is  $0.31.  From  this 
as  a  minimum,  the  amounts  increase 
to  $1.36  for  the  stores  having  inven- 
tories of  $60  and  over  in  relation  to 
their  sales.  Similar  increases  also 
characterize  the  stores  as  a  whole  in 
each  of  the  years.  ]\Ioreover,  for  each 
group   of   stores  when   classified  by 


331 


TABLE  237 

TOTAL  NET  SALES,  INVENTORY,  AND  AMOUNT  OF  INVENTORY  PER  $100  OF  TOTAL  NET 

SALES,     FOR     149     IDENTICAL     STORES     CLASSIFIED     BY     SIZE     AND     BY 

AMOUNT  OF  ADVERTISING  PER  $100  OF  TOTAL  NET  SALES, 

1919.     1918,     AND     1914,     COMBINED 


Classified 

Total 
Vat  Selea 

Amouct  of 

Xdvartlsln^ 

p«r  ilOO  of 

Total 

Not  Scaea 

Mambor 

of 
Store- 
yaara 

Total 
Bet  Sales 

Total 
Inventory 

Inventory  pap  <;100  of  Total  Kat  Sales 

Amount 

Per  Cent. 

(In  OOO'l) 

ar^P^<^                         1    Actual 
0     20     40     60     80  100  120  140  160 

Total 
(Avarags) 

447 

^.599,972 

116,369,406 

f37.54 

100.0 

Under  tl 
*1  to  »2 
(2   to  >3 
^5  fc  oTor 

106 
147 
114 

ei 

6,153,722 
10,474,625 
15,040,118 
11,951,507 

2,519,091 
4,359,751 
6,161,173 
4,329,391 

40.94 
41.62 
34.32 
36.29 

109.1 

110.9 

91.4 

96.7 

Total 

(iverago) 

: 

Total 
(Averaga) 

127 

3,532,911 

1,909,518 

56.31 

150.0 

i 

OnJar  #1 
U  to  »2 
«2  to  »3 
|3  i  over 

37 
51 
21 
18 

1,110,360 

1,383,638 

556,572 

482,291 

580,538 
813,497 
336,330 
260,159 

52.28 
58.79 
60.25 
53.94 

139.3 
1S6.6 
160.5 
143.7 

tJader  Uo 

1 

j 

Total 
(Average) 

166 

9,360,348 

4,254,795 

45.46 

121.1 

Dndw  »1 
*1  to  »2 
t2  to  )3 
|3  Ic  over 

51 
58 
37 
19 

2,845,600 
3,224,357 
2,163,431 
1,121,960 

1,238,760 

1,497,100 

1,022,722 

496,213 

43.53 
46.43 
47.16 
44,23 

116.0 
123.7 
125.6 
117.8 

»40  to  |80 

"""^^ 

Total 
(Avaraga ) 

112 

13,121,494 

5,193,131 

39.58 

105.4 

Uodor  $1 
tl  to  «2 
♦2  to  i3 
t3  &  over 

IS 
31 
35 
31 

1,635,795 
3,643,631 
4,249,058 
3,693,010 

536,834 
1,386,974 
1,584,201 
1,685,122 

32.82 
38.07 
37.28 
46.90 

87.4 
101.4 

99.3 
124.9 

$80  to  $180 

i 

Total 
(Average) 

43 

17,585,219 

4,931,962 

28.05 

74.7 

Onder  $1 
♦l  to  »2 
»2   to  13 
$3  ti  over 

2 

7 
2i 
19 

561,967 
2,222,949 
8,066,057 
6,734,246 

162,965 

662,180 

Z,21B,9SO 

1,887,897 

28.99 
29.79 
27.51 
28.03 

77.2 
79.4 
73,3 
74.7 

|180  &  over 

! 

Average  $37. M 


332 


TABLE  238 


TOTAL  NET  SALES,  INVENTORY,  AND  AMOUNT  OF  INVENTORY  PER  $100  OF  TOTAL  NET 

SALES,    FOR    149    STORES    CLASSIFIED    BY    SIZE    AND    BY    AMOUNT    OF 

ADVERTISING  PER  $100   OF   TOTAL   NET   SALES,   1919 


CUsairisd 

Total 
Hat  Balaa 

Araount  of 

Advert  1  a Ing 

per  $100  of 

Total 

Net  Salaa 

number 

of 
Stores 

Total 
Net  Salea 

Total 
Inventory 

Inventory  per  flOO  of  Total  Hoi  Sales 

Amount 

( 

Far  Cent. 

(In  OOO's) 

'^"P^^^"                                 1    Actual 
)      20     40      60     80   100   120   140   160   180 

Total 
(Avorago) 

149 

t20,303,641 

t6, 667, 056 

t32.e4 

1 

100.0 

Onder  |l 
»1  to  »2 
«e  to  $3 
^3  h  orer 

41 
47 
43 
19 

3,106,729 
4,460,395 
8,386,889 
4,349,623 

1.135,040 
1,634,516 
2,491,097 
1,406,403 

36.53 
36.65 
29.70 
32.33 

U1.2 

111.5 

90.4 

98.4 

Total 
(iTeraga) 

zzzm^' 

i 

Total 
(Average ) 

14 

428,714 

215,607 

50.29 

153.1 

i 

Under  $1 
»1  to  »2 
»2  to  U 
|3  &  ever 

0 
8- 
1 
2 

191,955 
135,428 
28,261 
73,070 

95,983 

75,435 

6,749 

37,440 

50.00 
65.70 
23.88 
51.24 

152.2 
169.6 
72.7 
156.0 

Itadar  Uo 

Total 
(Average) 

55 

3,082,152 

1,280,953 

41.56 

126.6 

Under  $1 
$1  to  (2 
t2  to  t3 

tS  Jc  over 

22 
21 
10 
2 

1,273,878 

1,133,971 

565,595 

108,713 

606,329 

475,162 

248,228 

61,234 

39.75 
41.90 
43.89 
47.19 

121.0 
127.6 
133.6 
143.5 

#40  to  tao 

Total 
(Average) 

66 

6,607,089 

2,366,933 

35^.82 

109.1 

i 

Under  tl 
»1  to  «2 
(2  to  $3 
tS  &  over 

1£ 
17 
IS 
9 

1,306,591 
1,907,262 
2,233,765 
1,109,471 

437,851 
655,613 
793,690 
479,779 

33.51 
94.97 
94.75 
43.24 

102.0 
104.7 
105.8 
131.7 

#80  to  *180 

i 

Total 
(Average) 

24 

10,185,686 

2,803,563 

27.58 

83.8 

^^^^^ 

Under  tl 
tl  to  t2 

tZ  to  tS 
tS  te  ever 

1 
4 
19 

6 

334,310 
1,283,754 
6,509,268 
3,058,374 

94,877 

428,906 

1,442,430 

837,950 

ss.sa 

33.36 
26.18 
27.40 

■IHi^MMH     ' 

86.4 
101.6 
79.7 

83.4 

|U0  &  OTsr 

; 

1                        , 

Average  t32.84 


size,  the  advertising  expenditures, 
measured  in  this  unit,  increase  as  the 
inventories  per  $100  of  total  net  sales 
increase.  This,  of  course,  is  to  be 
expected  in  view  of  the  method  of 
classifying  the  stores.     By  the  use  of 


such  a  measure,  stores  with  different 
sales  and  inventories  are  reduced  to 
a  unit  basis. 

Table  236  should  be  considered  in 
connection  with  the  details  in  Tables 
232  to  235,  inclusive.    Moreover,  it  is 


333 


of  interest  to  compare  Table  236  with 
Tables  26  and  143  which  show  respec- 
tively the  amounts  of  selling  expense 
and  the  amounts  of  wages  and  salaries 
expressed  in  this  form. 


Tables  237  to  240,  inclusive,  for  the 
combined  and  individual  years,  show 
the  amounts  of  inventories  per  $100 
of  total  net  sales  for  stores  classified 
by  size  and  by  amounts  of  advertising 


TABLE  239 

TOT.VL  NET  SALES,  INA^EXTORY,  AND  AMOUNT  OF  INVENTORY  PER  $100  OF  TOTAL  NET 

SALES,    FOR    149    STORES    CLASSIFIED    BY    SIZE    AND    BY    AMOUNT    OF 

ADVERTISING  PER  $100   OF   TOTAL   NET   SALES,    1918 


ClaBBlflod 

Tot»l 
Yet  Sales 

Amouot  of 

AdvertlBins 

per  llOO  of 

Total 

Net  Seles 

Nur.ber 

of 
Etoreo 

Total 
Met  Sales 

Inventory  per  }100  of  Total  Bet  Sales 

Total 
Inventory 

Amount 

C 

Per  Cent. 

(In  COO'i) 

Graphic                                  Actual 
20      40      60      80   100   120   140   160 

Total 
(Average) 

149 

114,322,667 

Is, 804, 340 

140.53 

100.0 

Onder  |l 
(1  to  |e 
iz  to  ts 

Is  &  over 

58 
49 
S8 
24 

2,156,926 
3,542,012 
4,480,247 
4,143,482 

983,421 
1,469,279 
1,736,775 
1,614,865 

45.59 
41.48 
38.77 
38.97 

112.5 

102.3 

95.7 

96.2 

Total 

( Average) 

: 

Totf.1 
(Avert ge) 

42 

1,256,795 

734,523 

58.44 

1 

144.2 

Dnder  }1 
|1  to  $2 
♦2  to  13 
Is  &  over 

12 

21 

6 

3 

387,840 

595,175 

175, 690 

98,090 

228,185 
544,768 
107,597 
53,973 

58.83 
57.93 
61.24 
55.02 

145.2 
142.9 
151.1 
135.8 

Under  #40 

1 

1 

Total 
( Average) 

60 

3,501,018 

1,729,460 

49.40 

121.9 

Dnder  il 
$1  to  t2 
|2  to  $3 
|3  t  ever 

22 
17 

16 
S 

1,212,225 
972,151 
995,546 
321,097 

588, 165 
487,603 
480,980 
172,712 

48.52 
50.16 
48.31 
53.79 

119.7 
123.8 
119.2 
132.7 

|40  to  teo 

; 

Total 
(Average) 

33 

3,860,130 

1,741,662 

45.12 

111.3 

i 

teo  to  1180 

Under  $1 
|1  to  |2 
|2  to  13 
Is  It  over 

3 
S 
10 

12 

329,204 
1,035,471 
1,138,028 
1,367,427 

98,983 
403,054 
494,286 
745,259 

30.07 
58.92 
43.43 
54.90 

74.2 

96.0 

107.2 

135.5 

; 

■l^^^M^MI 

Total 
(Averc.ee) 

14 

6,704,723 

1,598,795 

28.03 

69.2 

tUO  fc  orer 

under  ll 
♦l  to  t2 
|2  to  |3 
Is  fc  ever 

1 
3 
6 

4 

227,657 

939,215 

2,170,983 

2,566,868 

68,088 
233,874 
653,912 
642,921 

29.91 
24.90 
30.12 
27.16 

73.8 
61.4 
74.5 
67.0 

Average  |40.55 


334 


TABLE  240 

TOTAL  NET  SALES,  INVENTORY,  AND  AMOUNT  OP  INVENTORY  PER  $100  OF  TOTAL  NET 

SALES,    FOR    149    STORES    CLASSIFIED    BY    SIZE    AND    BY    AMOUNT    OF 

ADVERTISING  PER  $100   OF   TOTAL   NET   SALES,    1914 


Classified 

Total 
Net  Sbles 

Anount  of 

Advertising 

per  $100  of 

Total 

Xet  Sales 

Number 
of 

Stores 

Total 
Net  Sales 

Total 
Inventory 

Inventory  per  llOO  of  Total  Net  Sales 

Amount 

Per  Cent. 

(In  OOO'a) 

Graphic             Actual 
20  40   60  80  100  120  140  160 

Total 
(Average ) 

149 

18,973,664 

13,398,010 

|43.44 

100.0 

: 

Under  ll 
ll  to  |2 
|2  to  |3 
|3  &  over 

26 
51 
34 

38 

890,067 
2,472,218 
2,172,982 
3,438,397 

400,630 
1,255,956 

933,301 
1,308,123 

45.01 
50.80 
42.95 
38.04 

103.6 

116.9 

98.9 

87.6 

Total 
(Average) 

^^^M 

^""T"" 

: 

; 

Total 
(Average ) 

71 

1,847,402 

1,039,388 

56.26 

129.5 

i 

Under  |1 
ll  to  |2 
|2  to  |3 
|3  &  over 

19 
25 
14 
IS 

530,565 
653,086 
352,621 
3U,131 

256,364 
393,294 
220,984 
168,746 

48.32 
60.22 
62.67 
54.24 

111.2 
138.6 
144.3 
124.9 

Under  $40 

Total 
(Average ) 

50 

2,777,177 

1,244,382 

44.81 

103.2 

^^^^^^^  i 

Under  ll 
|1  to  |2 
|2  to  Is 
|3  J:  over 

7 
20 
11 
12 

359,502 

1,U8,236 

607,290 

692,150 

144,266 
634,335 
293,514 
272,267 

40.13 
47.78 
48.53 
39.34 

92.4 
110.0 
1U.3 

90.6 

$40  to  Sao 

^1 

i 

! 

; 

Total 
(Average ) 

23 

2,654,275 

1,084,636 

40.86 

94.1 

1 

^0  to  ^180 

Under  |l 
ll  to  |2 
|2  to  |3 
|3  fc  over 

6 

7 
10 

700,898 

827,265 

1,126,112 

328,327 
296,225 
460,084 

46.84 
35. 8i 
40.86 

107.8 
82.4 
94.1 

i 

i 

1 

• 

1 

Total 
(Average ) 

5 

1,694,810 

629,604 

31.26 

71.9 

#180  &  over 

Under  |l 

ll  to  |2 

|2  to  |3 

|3  &  over 
1 

3 
S 

385,806 
1,309,004 

122,578 
407,026 

31.77 
91.09 

73.1 
71.6 

Avsrag*  |43.44 


335 


expenditure  in  relation  to  sales.  These 
tables  support  the  detail  contained  in 
Tables  232  to  235,  inclusive. 

In  considering  Table  230,  it  was 
pointed  out  that  the  amounts  of  in- 
ventories per  $100  of  total  net  sales 
vary  inversely  with  the  amounts  of 
advertising  expenditure  per  $100  of 
total  net  sales.  But  in  this  table, 
stores  were  not  classified  by  size. 
When  store-size  is  considered,  as  in 
Tables  237  to  240,  inclusive,  no  such 
general  tendency  is  observed.  The 
larger  the  store,  the  smaller  the  in- 
ventories, but  for  stores  of  the  same 
size,  the  amounts  of  inventory  are 
substantially  the  same  for  stores  hav- 
ing different  amounts  of  advertising 
expenditure  per  $100  of  total  net 
sales.*  In  other  words,  store-size  is 
more  important  in  determining  the 
amount  of  inventory  in  relation  to 
sales  than  is  the  amount  of  adver- 
tising expenditure. 

In  Tables  241  to  244,  inclusive, 
the  amounts  expended  for  advertising 
are  expressed  in  terms  of  selling  ex- 
pense for  stores  classified  by  size  and 
by  the  amounts  of  their  inventories  in 
relation  to  sales.  When  the  stores  for 
the  combined  years  are  considered,  it 
is  found  that  the  advertising  expendi- 
tures per  $100  of  selling  expense  in- 
crease, on  the  whole,  as  stores  increase 
in  size.  The  average  for  the  three 
years  for  all  the  stores  is  $21.27.    For 

*  For  the  stores  with  sales  of  $80,000  to 
$180,000,  inventories  per  $100  of  sales  in- 
crease with  advert  isinf^  per  $100  of  sales  in 
the  combinetl  years,  and  in  1919  and  1918. 
The  same  condition  holds  in  1919  and  1918 
for  the  stores  with  sales  of  $40,000  to 
$80,000. 


those  stores  with  annual  sales  under 
$40,000,  it  is  $19.79;  for  those  with 
annual  sales  of  $40,000  to  $80,000,  it 
is  $18.06;  for  those  with  annual  sales 
of  $80,000  to  $180,000,  it  is  $21.67; 
and  for  those  with  annual  sales  of 
$180,000  and  over,  $22.53.  When  the 
entire  group  of  stores  is  considered, 
irrespective  of  size,  but  in  accordance 
with  the  amounts  of  inventory  in 
relation  to  sales,  advertising  expendi- 
tures remain  essentially  constant  pro- 
portions of  selling  expense.  When 
the  stores  are  classified  by  size,  more- 
over, while  the  proportions  increase 
as  stores  increase  in  size,  they  show 
no  regular  direction  of  change  with 
changing  inventories  for  the  different 
size-groups.  It  is  difficult  to  gener- 
alize with  respect  to  them  in  view  of 
the  divergent  tendencies.  The  tables 
give  the  detail  for  the  combined  and 
individual  years.  By  means  of  the 
graphic  summaries,  the  relationships 
which  obtain  between  them  may  be 
readily  compared. 

It  should  be  remembered  in  con- 
sulting these  tables  that  a  group  of 
identical  stores  has  been  used.  From 
year  to  year,  however,  the  stores  vary 
in  sales  and  in  the  amounts  of  their 
inventories.  Inventories,  as  a  whole, 
were  lower  in  1918  than  in  1914,  and 
lower  in  1919  than  in  either  of  the 
other  years.  Accordingly,  as  may  be 
seen  from  Tables  242  to  244,  inclusive, 
not  only  is  the  number  of  stores  dif- 
ferent from  year  to  year  in  each  of 
the  size-groups,  but  also  different  in 
each  of  the  inventory  groups.  The 
changes  may  be  illustrated  as  follows : 
In  1914,  71  of  the  stores  had  sales 


336 


TABLE  241 

TOTAL   SELLING  EXPENSE,   ADVERTISING,   AND   AMOUNT   OF  ADVERTISING  PER  $100   OF 

SELLING  EXPENSE,  FOR  149  IDENTICAL  STORES  CLASSIFIED  BY  SIZE  AND 

BY    AMOUNT    OF    INVENTORY    PER    $100    OF    TOTAL    NET 

SALES,    1919,    1918,    AND    1914,    COMBINED 


Classified 

Amoimt  of 

Inventory 

per  5 100  of 

Total 

Net  Salee 

Himber 

of 
Store- 
yeajra 

Total 
Selling 
Expense 

Total 
Advertising 

Advertising  per  $100  of  Selling  Expense 

Total 
Net  eales 

Amount 

( 

Per  Cent. 

(In  000' b) 

Orapbic           Actual 
)   20   40   60   60  100  120  140 

Total 
(Average ) 

447 

$4,745,829 

$1,009,377 

$21.27 

100. 0 

Onder  $20 
iZO   to  $40 
$40  to  $60 
$60  k   over 

14 
168 
177 

88 

172, 900 
3,088,085 
1,128,967 

355,877 

36,654 
655,340 
243,739 

75,644 

21.20 
21.22 
21.59 
20.69 

99.7 

99.8 

101.5 

97.5 

Total 
(Average ) 

! 

1 

Total 
(Average ) 

127 

298,231 

59,024 

19.79 

93.0 

i 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

1 
18 
52 
56 

948 

54,036 

112,294 

130,953 

228 

9,477 

26,  U2 

23,207 

24.05 
17.54 
23.25 
17.72 

U3.1 
82.5 

100.3 
89.3 

ODdar  |40 

! 

; 

; 

1 

Total 
(Average) 

166 

877,524 

158,486 

18.06 

84.9 

i 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

6 
52 
82 
25 

29,622 
283,795 
428,579 
135,528 

4,904 
54,480 
74,251 
24,851 

16.56 
19.20 
17.32 
18.34 

77. » 
90.5 
81.4 

ee.e 

|40  to  $80 

1 

i 

Total 
(Average) 

112 

1,445,029 

313,119 

21.67 

101.9 

^^^^^ 

too  to  tiso 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  &:  over 

5 

60 

40 

7 

53,399 
802,675 
499,659 

89, 396 

8,305 

156,342 

122,886 

25,586 

15.55 
19.48 
24.59 
28.62 

73.1 

91.6 

11S.6 

154.6 

^^^i 

^'^i^ 

; 

Total 
(Average) 

43 

2,125,045 

478,748 

22.53 

105.9 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

2 

38 

3 

88,931 

1,947,679 

88,435 

23,217 
436,041 
80,490 

26.11 
22.34 
23.17 

122.8 

fieo  &  over 

105.0 

108.9 

i 

Avarago  (21.27 


337 


TABLE  242 

TOTAL  SELLING   EXPENSE,   ADVERTISING,   AND  AMOUNT  OF  ADVERTISING  PER  $100   OP 

SELLING  EXPENSE,   FOR  149  STORES  CLASSIFIED  BY   SIZE   AND  BY  AMOUNT 

OF    INVENTORY    PER    $100    OP    TOTAL    NET    SALES,    1919 


Claaeiried 

Total 


(In  oOO'i) 


AaouDt  of 

Inventory 

par  $100  of 

Total 

Nat  Sales 


Total 
Selling 
Expense 


Total 
Advertising 


Advertising  par  $100  of  Selling  Expense 


Per  Cent. 


Oraphlc 


Total 
(Average ) 


Under  ^40 


|40  t«  |80 


♦eo  to  $180 


liao  &  over 


Total 
(Average) 


♦2,135,072 


$453,840 


$21.26 


Ondar  $20 
$20  to  $40 
$40  to  $60 
$60  8c  over 


105,  7U 

1,649,518 

345,965 

33,878 


24,173 

348,645 

73.301 

7,721 


Total 
(Average) 


29,018 


6,262 


dnder  $20 
$20  to  $40 

$40  to  $eo 

$60  &  over 


6,275 
15,797 
6,946 


Total 
(Average) 


233,843 


Coder  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 


7,320 

94,720 

122,592 

9,2U 


Total 
(Average) 


700,800 


Under  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 


54,307 
465,124 
183,648 

17,721 


Total 
(Average) 


1,171,411 


Under  $20 
$20  to  $40 
$40  to  $60 
$60  !c  over 


64,084 

1,083,399 

23,928 


895 
4,334 
1,033 


38,705 


1,224 
16,723 
19,317 

1,441 


137,666 


3,573 
84,725 
44,121 

5,247 


271,207 


19,376 

246,302 

5,529 


22.87 
21.14 
21.19 
22.79 


14.26 

27.44 
14.87 


16.55 


16.72 
17.66 
15.76 
15,  6A 


19.64 


10.41 
18.22 
24.02 
29.61 


23.15 


30.24 
22.73 
23.11 


100.0 

107.6 
99.4 
99.7 

107.2 


67.1 

129.1 

69.9 


77.6 


78.6 
83.1 
74.1 
73.6 


92.4 


49.0 

85.7 

113.0 

139.5 


108.9 


142.2 
106.9 
108.7 


Average  $21.26 


338 


under  $40,000.  In  1918,  there  were 
42  with  sales  of  this  amount,  and  in 
1919  there  were  14.  Moreover,  in 
1914,  29  or  41  per  cent,  of  the  71 
stores,  had  inventories  of  $60  and 
over.     In   1918,  23,  or  55  per  cent. 


of  the  42  stores,  had  inventories  of 
this  size,  and  in  1919,  4,  or  29  per 
cent,  of  the  14  stores,  had  inventories 
of  this  size.  Similar  changes  in  other 
groups  characterize  the  stores  from 
year  to  year. 


TABLE  243 

TOTAL  SELLING  EXPENSE,   ADVERTISING,   AND   AMOUNT  OF  ADVERTISING  PER   $100   OP 

SELLING  EXPENSE,  FOR  149   STORES  CLASSIFIED  BY   SIZE  AND  BY  AMOUNT 

OF    INVENTORY    PER    $100    OF    TOTAL    NET    SALES,    1918 


Aaoant  of 

Inventory 

p«r  tlOO  of 

Total 
net  Salee 

HoBber 

of 
Stores 

Total 
Selling 
Expense 

Total 
Advertising 

Advertising  per  $100  of  Selling  acpense 

Cluilflsd 

Total 
Fet  S<as* 

Anosnt 

C 

Per  Cent. 

(la  OOO's) 

Graphic 
)      20      40      60     80   100   120   140  160  IflO 

Actual 

Total 
(Average) 

149 

$1,573,249 

$319,845 

$20.33 

100.0 

Onder  $20 
$20  to  $40 
$40  to  #60 
$60  k  over 

5 
46 

60 

40 

32,117 
937,441 
427,462 
176,229 

4,960 
183,038 
95,288 
36,559 

15.44 

19.53 
22.29 

20.-75 

75.9 

96.1 

109.6 

102.1 

Total 

: 

Total 
(Average) 

42 

101,621 

19,197 

18.89 

92.9 

1 

Oidar  t40 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  k  over 

« 
13 
25 

17,520 
27,892 
66.209 

3,875 
6,486 
e,8S6 

22.12 
23.25 
15.72 

* 
108.8 
114.4 
77.3 

; 

Total 
(Average) 

«0 

531,968 

67,778 

17.41 

85.6 

^^^^ 

$40  to  $00 

Dnder  $20 
J20  to  $40 
$40  to  $60 
$60  &  over 

2 

15 
29 
14 

7,270 
97,097 
144,693 
82,898 

1,U9 
15,355 
26,154 
15,150 

15.39 
15.81 
18.08 
18.28 

75.7 
77.8 

86.9 
89.9 

t 

Total 
(Average) 

33 

422,051 

94,927 

22.49 

110.6 

i 

(80  to  »ieo 

ITuder  $20 
$20  to  $40 
$40   to  $60 
$60  Ji  over 

14 

16 
3 

194,559 
190,370 
37,122 

84,667 
47,687 
12,573 

17.82 
2S.05 
33.87 

87.7 
123.2 
166.6 

^^^^ 

""'^^" 

Total 
(Average ) 

14 

717,619 

147,943 

20.62 

Onder  $20 
$20  to  $40 
$40  to  $60 
$60  i  over 

1 
11 
2 

24,847 

628,265 

64,507 

3,841 
129,141 
14,961 

15.46 
20.56 
23.19 

76.0 
101.1 

(IBO  &  over 

"" 

Average  $20.35 


339 


Another  group  of  stores,  somewhat 
larger  than  that  considered  above,  is 
available  in  1919  for  the  study  of 
advertising  expenses  in  relation  to 
sales  and  selling  expense.  The  de- 
tails for  this  study  are  contained  in 
Tables  245  and  2-46.  The  stores  are 
classified  by  size  and  by  the  amounts 
of  inventory  per  $100  of  total  net 
sales. 

In  Table  245  for  282  stores,  the 
advertising  expenditure  per  $100  of 
total  net  sales  is  $2.25.  For  149 
stores,  as  shown  in  Table  233,  the 
corresponding  figure  was  $2.24.  As 
the  stores  increase  in  size,  the  amounts 
expended  for  advertising  per  $100  of 
total  net  sales  increase.  In  spite  of 
the  fact  that  approximately  twice  as 
many  stores  as  in  Table  233  are  here 
considered,  the  differences  in  the 
amounts  are  small.  This  suggests 
again  the  fact  that  the  experience 
available  for  study,  even  with  the 
fewer  stores,  is  adequate  for  safe 
generalization. 

In  Table  245,  the  amounts  of  adver- 
tising expenditure  are  measured  in 
terms  of  sales  alone  and  also  in  terms 
of  sales  per  stock  turnover.*  It  is 
this  latter  measure  which  is  of  pri- 
mary interest  in  this  connection.  The 
average  amount  expressed  in  this 
manner  for  the  entire  group  of  stores 
is  $1.02.  The  smallest  amount,  char- 
acterizing the  stores  with  sales  be- 
tween $40,000  and  $80,000,  is  $0.76. 
The  largest  amount,  applying  to  the 
stores  with  sales  of  $80,000  to  $180,- 
000,  is  $1.05.    Over  the  entire  range 

•  The  method  by  which  this  unit  is  com- 
puted is  explained  on  page  4,  item   19. 


of  sizes,  the  amounts  increase  as  the 
stores  increase  in  size,  but  by  a  lesser 
percentage  than  they  do  when  ex- 
pressed in  terms  of  sales  alone.  That 
is,  stock  turnover  in  stores  of  increas- 
ing size  acts  as  a  compensating  factor 
to  the  increased  expenditures  for 
advertising,  measured  in  terms  of 
sales  alone. 

Interest  lies,  however,  not  only  in 
the  amounts  for  stores  of  different 
size,  but  also  in  those  for  stores  of  a 
given  size,  but  with  different  amounts 
of  inventory  per  $100  of  total  net 
sales.  For  the  stores  as  a  whole,  and 
when  classified  by  size,  advertising 
expenditures  per  $100  of  total  net 
sales  per  stock  turnover  increase  with 
the  amounts  of  inventory  per  $100  of 
total  net  sales.  That  is,  large  inven- 
tories in  1919  in  relation  to  sales  cor- 
respond to  large  advertising  expendi- 
tures per  $100  of  total  net  sales  per 
stock  turnover,  and  small  inventories 
per  $100  of  total  net  sales  correspond 
to  small  advertising  expenditures  per 
unit  of  sales  per  stock  turnover. 

The  value  of  Table  245  lies  in  the 
use  of  the  more  complex  method  of 
expressing  advertising,  since  by  this 
measure  the  variations  in  the  turn- 
over rates  in  the  different  stores  are 
reduced  to  a  unit  basis.  This  table 
by  itself  and  in  connection  with  Table 
233  merits  careful  study. 

Table  246  shows  for  the  282  stores, 
classified  as  in  Table  245,  the  amounts 
of  advertising  expenditure  in  terms 
of  selling  expense  alone  and  of  selling 
expense  per  stock  turnover.  While 
the  amounts  of  advertising  per  $100 
of   selling   expense   tend   neither   to 


340 


TABLE  244 

TOTAL  SELLING   EXPENSE,   ADVERTISING,   AND  AMOUNT   OF   ADVERTISING  PER   $100   OF 

SELLING  EXPENSE,  FOR  149   STORES  CLASSIFIED  BY   SIZE   AND  BY  AMOUNT 

OF    INVENTORY    PER    $100    OF    TOTAL    NET    SALES,    1914 


ClasslfJad 

Total 
Bet  Sales 

Anount  of 

Invontory 

per  $100  of 

Total 

Het  Sales 

Homber 

of 
Stores 

Total 
Solllns 
Sxpenae 

Total 
Advertising 

Advertising. per  $100  of  Selling  bqwnsa 

Amount 

Far  Cont. 

(In  OOO's) 

9   20   40   60   80  100  120 

Total 
(Average ) 

149 

$1,037,508 

$256,692 

$2E.72 

! 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  &  over 

4 
99 
66 
40 

95,072 
501,126 
965,540 
145,770 

7,521 

123,657 

75,150 

29,964 

21.44 
24.68 
21.14 
20.14 

94.4 

108.6 

Total 
(Averaga ) 

; 

1 

i 

Total 
(Average) 

71 

167,592 

99,566 

20.09 

1 

Onder  $20 
$20  to  $40 
$40  to  $60 
$60  fc  over 

1 
10 
91 
29 

948 
90,241 

68,605 
67,798 

228 
4,707 
16,292 
19,938 

24.06 
15.56 
22.29 
19.67 

tbdar  $40 

68.5 

86.6 

Total 
(Average ) 

60 

311,729 

62,009 

19.89 

87.5 

$40  to  $eo 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  8c  over 

2 

18 

26 

8 

15,092 

91,978 

161,294 

43,419 

2,561 
28,402 

28,780 
8,260 

17.04 
24.36 
17.84 

19.02 

75.0 

107.2 

76.5 

83.7 

Total 
(Average ) 

29 

922,178 

80,S2« 

24.99 

110.0 

Under  $20 
$20  to  $40 
$40  to  $60 
$60  k  over 

1 

9 

10 

3 

19,092 
142,892 
125,641 

34,555 

4,792 
96,950 
91,078 

7,766 

24.79 
25.86 
24.74 
22.48 

109.1 

113.8 

108.9 

98.9 

$80  to  $180 

! 

Total 
(Average ) 

S 

236,015 

69,598 

25.25 

111.1 

! 

$180  fc  over 

Utader  $20 
$20  to  $40 
$40  to  $60 
$60  k  ovar 

S 

256,015 

59,598 

25.25 

Ul.l 

i 

Avera^  $22.72 


341 


increase  nor  to  decrease  regularly  as 
inventories  increase,  the  amounts  per 
$100  of  selling  expense  per  stock 
turnover  *  rapidly  increase  with  an 
increase  in  the  size  of  the  inventory 
in  terms  of  sales.  This  is  true  not 
only  for  all  stores,  but  also  for  stores 
of  a  given  size. 

From  Tables  232  to  246,  inclusive, 
it  may  be  concluded  as  follows: 
First,    advertising   expenditures    per 

•  The  method  by  which  this  unit  is  com- 
puted is  explained  on  page  4,  item  21. 


$100  of  total  net  sales  increase  as 
stores  increase  in  size.  Second,  ad- 
vertising expenditures  per  $100  of 
total  net  sales  for  stores  irrespective 
of  size  decrease  as  the  amounts  of 
inventory  per  $100  of  total  net  sales 
increase.  Third,  for  stores  of  a  given 
size,  but  with  different  amounts  of 
inventory  in  relation  to  sales,  the 
direction  of  advertising  expenditures 
per  $100  of  total  net  sales,  while 
tending  on  the  whole  to  increase  with 
the  size  of  the  inventories,  is  uncer- 


TABLE  245 


TOTAL  NET   SALES,   ADVERTISING,   AND  AMOUNT  OF   ADVERTISING   PER  $100   OF  TOTAL 

NET  SALES  PER  STOCK  TURNOVER,   FOR  STORES  CLASSIFIED   BY   SIZE  AND   BY 

AMOUNT    OF    INVENTORY    PER    $100    OF    TOTAL    NET    SALES,    1919 


Cluairiad 

teotmt  of 
Inrentorr 
(Mr  »100   of 
Tot«l 
1st  S*U* 

BoBlMr 

of 
Storaa 

MTertlatng  par  tlOO  of  tottl  Hat  S&laa 

'AOrartlalag  tor  tloo  of  Total  Hat  Salaa 
par  Stock  Turnover 

Total 
ll<t  Salas 
(la  OOO's) 

AAcunt 

»ar  Cent. 

iaotmt 

Par  Cent. 

'^f^'                    1   Aotual 
0     20     «0     60     80  100  120   140 

*^P"«                                       1     /lotual 
0     20     40     60     60   100   120   140   160   ISO  200 

Total 
(&T«rag9) 

288 

ts.ss 

100.0 

*1.02 

! 

100.0 

To -..I 

ttijar  »?0 
tCO   to   UO 

17 

1S9 

112 

2.29 

2.39 
1.81 

101.3 
106.2 
80.4 

0.52 
1.00 
1.29 

51.0 
96.0 

ire.s 

j 

^^^^^^^    ! 

1 

1 
j 

Tc;il 

3S 

1.17 

62.0 

0.78 

76.5 

rh>aT  Uo 

«3o  to  i:«o 

»40  »  oT.r 

10 
23 

1.06 

l.as 

47.1 
64.7 

0.50 
0.9S 

49.0 
93.1 

»>tal 
(ATsra,:?*! 

10« 

l.ST 

60.9 

0'.78 

74.5 

(Ms  t*  tso 

tt*ler  t.:o 
«SC  to  (Uo 
t40  k  o,,r 

S 
49 
B8 

1.3S 
l'.4S 
1.28 

81.8 
69.8 

8a.« 

a.js 
a.87 

0.83 

32.4 
68.7 
83.3 

?otja 

(*Tor»j3) 

«e 

t.OO 

68. a 

1.08 

102.9 

1 

•80  U  lUO 

ITUSar  tto 
t«0  to  »«0 
Ho  a>  OTor 

6 

es 

90 

0.81 
l.Sl 
8.34 

96.0 
84.9 
104.0 

0.19 
0.87 
1.S6 

18.6 
85.3 
192.9 

M 

«.90 

124.4 

1.00 

98.0 

i 

tto  to  Mo 

» 
89 

1 

S.SJ 
2.87 
2.3* 

113.3 
127.6 

los.a 

0.67 
1.10 
1.9S 

S5.9 

107  .a 

194.x 

lUOk  mr 

i 

ATttr«g«  i2.2S 


Averago  %\,0Z 


342 


TABLE  246 


AMOUNT  OP  ADVERTISING  PER  $100  OF  SELLING  EXPENSE  PER  STOCK  TURNOVER,  FOR 

STORES   CLASSIFIED   BY   SIZE  AND   BY   AMOUNT   OF  INVENTORY    PER 

$100   OF   TOTAL  NET   SALES,    1919 


itaouiit  of 

Inventory 

p«r  $100  cf 

TotBl 

!Iet  Sales 

Hunber 

of 
Etorea 

Advertising  per 

(100   of 

Sailing  Expenae 

Advertising  per  (100  of  Sellli^  Bxj>«n9* 
per  Stock  Turnover 

Claeslfled 
Total 

Anonst 

fer 

Cent. 

Anount 

Par  Cent. 

(in  OOO'a) 

3     20     40 

Oraphlo 
60      60 

1    Actual 
100   120   140 

*'"="°                                       1      Actual 
3     20     40     60     60   100   120   140  160  180  20O 

Total 
(Avorogo) 

282 

$22.15 

100.0 

(10.07 

100.0 

j 

Undor  $20 
tso  to  Uo 
t40  k  ovor 

17 

153 
112 

25.28 
22.14 
20.50 

114.1 

100.0 
92.6 

5.75 
9.23 
14.G* 

57.1 
91.7 
145.4 

Tot«l 
(Avorae«) 

I    i 
j 

j 

• 
1 
t 
j 

i 

Total 
(Average) 

S3 

19.59 

88.4 

13.06 

129  .7 

1 
1 

Ondsr  i*a 

tinder  ^20 
$20  to  t40 
Uo  t  over 

10 
2S 

1S.6S 
20.01 

84.1 

90.5 

8.87 
15.39 

88.1 
152.3 

""^ 

1 

: 

Total 
(Average ) 

106 

18.39 

83.0 

10.22 

101.5 

'"■■^" 

(Tnder  t20 
$20  to  (40 
Uo  4  over 

5 

45 
58 

23.70 
20.73 
16. S« 

107.0 
C5.6 
7S.9 

S.64 
9.42 
10.91 

56.0 
93.5 

108.9 

$40  to  *80 

■  j 
j 

i 

Total 
(Average) 

SS 

19.71 

89.0 

10.37 

103.0 

— 

! 

i 

Sao  to  tiso 

Dndar  (20 
(20  to  (40 
(40  k  over 

5 
65 
90 

S.22 
IS. 62 
25,13 

41.6 
84.1 
104.4 

2.20 
8.49 
15.42 

2i.a 

64.0 
153.1 

""^ 

i 

Total 
(Average) 

45 

24.62 

111.2 

8.79 

87.3 

Dnd«r  (20 
(20  to  (40 
(40  k  over 

9 
15 

1 

27.52 
24.06 
2S.U 

124.2 
108.6 
104.3 

6.12 

60.8 
91.9 
191.3 

iieo  i  over 

1 

Avorage  €£2.13 


Average  $10,07 


tain  for  some  of  the  groups  in  the 
different  years.  Fourth,  when  the 
amounts  of  advertising  expendi- 
ture are  expressed  per  $100  of 
total  net  sales  for  the  amounts  sold 
per  $1  of  inventory,  they  decreased 
between  1914  and  1918,  and  1918  and 
1919,  for  stores  classified  by  size. 
Fifth,  expenditures  for  advertising 
per  $100  of  total  net  sales  for  the 
amount  sold  per  $1  of  inventory 
increase  as  the  amounts  of  inventory 
per  $100  of  total  net  sales  increase. 
This  condition  holds  for  stores  treated 


as  a  whole  and  when  classified  by  size. 
Sixth,  the  amounts  of  inventory  per 
$100  of  total  net  sales  for  stores  con- 
sidered irrespective  of  size  decrease 
as  the  amounts  of  advertising  per 
$100  of  total  net  sales  increase.  When 
the  stores  are  classified  by  size,  the 
amounts  of  inventory  per  $100  of 
total  net  sales  neither  increase  nor 
decrease  regularly  as  the  amounts  of 
advertising  expended  per  $100  of 
total  net  sales  increase.  Seventh, 
advertising  expenditures  per  $100  of 
selling  expense  increase  as  stores  in- 


343 


crease  in  size.  Eighth,  the  amounts 
of  advertising  per  $100  of  selling 
expense,  for  stores  considered  irre- 
spective of  size,  remain  essentially 
constant  for  one  group — 149 — and 
decrease  for  another  group — 282 — of 
stores,  as  inventories  in  relation  to 
sales  increase.  When  stores  are  clas- 
sified by  size,  the  direction  of  change 
in  the  amounts  is  uncertain.  The 
tendency  for  some  of  the  groups  is  for 
tlie  amounts  to  increase  and  for 
others  to  decrease  as  inventories  in 
relation  to  sales  increase. 

C. — Yearly  Amounts  of  Expenditure 
for  Advertising  per  $100  of  Total 
Net  Sales,  for  Stores  Classified  hy 
Bates  of  Stock  Turnover  and  hy 
Size,  1919. 

For  1919  the  records  of  282  stores 
are  available  for  a  study  of  the 
amounts  of  advertising  expenditures 
per  $100  of  total  net  sales  for  stores 
classified  by  rates  of  stock  turnover 
and  by  size.  In  Table  247  the  stores 
are  classified  by  size  and  by  rates  of 
stock  turnover.  In  Table  248  they 
are  classified  by  the  size  of  city  in 
which  they  are  located,  and  by  rates 
of  stock  turnover,  store-size  being 
ignored. 

For  the  282  stores,  as  shown  in 
Table  247,  the  average  expenditure 
for  advertising  per  $100  of  total  net 
sales  is  $2.25.  For  the  stores  which 
turned  their  stock  less  than  once,  it 
is  $1.72.  From  this  amount  as  a 
minimum,  the  expenditures  increase 
to  $2.59  for  stores  which  turned  their 
stock  four  times  and  over.  For  the 
stores  with  a  given  rate  of  turnover, 


advertising  expenditures  per  $100  of 
total  net  sales  increase  as  the  stores 
increase  in  size.  That  is,  the  amounts 
of  advertising  per  $100  of  total  net 
sales  vary  directly  with  the  size  of 
the  store,  this  condition  obtaining  not 
only  for  the  group  treated  as  a  total, 
but  also  when  it  is  classified  by  the 
rates  at  which  stock  is  turned.  In 
the  detail  in  which  the  data  are 
shown,  there  are  too  few  instances  in 
a  number  of  places  to  secure  a  satis- 
factory average.  The  data,  however, 
are  shown  in  this  form  because  it  is 
thought  desirable  to  give  standard 
expenditures  in  this  particular  for 
stores  classified  according  to  the  con- 
ditions which  seem  to  determine  the 
amounts.  It  is  not  contended,  of 
course,  that  a  causal  connection  is 
shown  between  the  amounts  of  adver- 
tising expenditure  and  stock  turn- 
over. The  association  between  these 
facts,  however,  is  so  unmistakable  as 
to  suggest,  if  not  a  causal,  at  least 
a  related  connection. 

In  Table  248,  the  same  282  stores 
are  classified  by  location  and  by  rates 
of  stock  turnover.  For  the  stores 
arranged  in  this  form,  two  methods 
of  expressing  the  amounts  of  adver- 
tising are  used :  First,  they  are  given 
in  terms  of  sales;  and,  second,  in 
terms  of  sales  per  stock  turnover. 

For  the  204  stores  in  the  small 
cities,  the  average  amount  of  expendi- 
ture per  $100  of  total  net  sales  is 
$1.59.  For  the  group  of  stores,  when 
classified  by  the  rates  of  stock  turn- 
over, the  amounts  decrease  generally 
as  the  stock  turnover  rates  increase. 
For  the  78  stores  located  in  the  large 


344 


TABLE  247 

TOTAL  NET  SALES,   ADVERTISING,   AND   AMOUNT   OF  ADVERTISING   PER  $100   OF  TOTAIi 
NET    SALES,    FOR    STORES    CLASSIFIED    BY    RATES    OF    STOCK    TURN- 
OVER   AND    BY    SIZE    OF    STORE,    1919 


Claaelfled 

Total 
Net  sales 
(In  OOO'b) 

Htonber 

of 
Stores 

Total 
Het.  Sales 

Total 
Advertising 

Advertising  per  $100  of  Total  Net  Sales 

Rates  of 
Btook 

Aiaount 

Per  Cent. 

Qraphlc           Actual 
p   20  40   60   80  100  12.0  14i0 

Total 
(Average) 

282 

$35,563,014 

$799,944 

$2.25 

i 

100.0 



Total 
(Average) 

Under  $40 
»40  to  #80 
$80  to  $180 

$180  ic  over 

33 

106 
98 
45 

1,012,152 

6,020,400 

U,  667, 072 

16,863,390 

11,888 

82,543 

233,690 

471,823 

1.17 
1.37 
2.00 
2.80 

1.72 

52.0 

60.9 

'^^^"^^^^  I 

124.4 

I 

Total 
(Average ) 

9 

601,109 

10,346 

76.4 

^Hi^ 

TktdM-  1 

Under  $40 
$40  to  $80 
$80  to  $180 

$180  (c  over 

2 

4 
3 

64,787 
226, 698 
309,624 

719 
3,567 

6,oeo 

1.11 
1.57 
1.96 

49.3 
69.8 
87.1 

Total 
(Average) 

136 

11,010,775 

209,205 

1.90 

84.4 

1 

1  to  2 

Uhdar  $40 
$40  to  $80 
$eO  to  $180 

$180  &  over 

19 

66 

45 

6 

570,712 
3,571,041 
5,487,136 
1,361,886 

7,328 

49,604 

122,893 

29,380 

1.28 
1.39 
2.24 
2.13 

56.9 
61.8 
99.6 
94.7 

Total 
(Average ) 

100 

15,987,018 

389,788 

2.44 

108.4 

2  t«  S 

Under  $40 
$40  to  $80 
$80  to  $180 

$180  k   over 

12 
26 
40 
2S 

376, 653 
1,561,875 
4,663,355 
9,385,135 

3,841 

21,447 

89,307 

275,193 

1.02 
1.37 
1.92 
2.93 

45.3 

60.9 

85.3 

130.2 

Total 
(Average) 

23 

4,443,953 

99,583 

2.24 

99.6 

9  to  4 

Under  $40 
$40  to  $80 
$80  to  $180 

$180  8c  over 

8 
5 

10 

510,610 

617,557 

3,315,886 

6,701 

8,688 

84,194 

1.31 
1.41 
2.54 

58.2 

62.7 

112.9 

I 

Total 
(Average) 

14 

3,520,159 

91,022 

2.59 

115.1 

^^^^^^^ 

4  &  over 

Under  $40 
$40  to  $80 
$80  to  $180 
,  $180  8c  over 

2 

5 

7 

150,276 

889,400 

2,780,483 

1,224 

6,742 

83,056 

0.81 
1.14 

36.0 

50.7 

132.9 

i 

Average  §2.25 


345 


cities,  the  average  expenditure  for 
advertising  in  relation  to  sales  is 
$2.85.  When  this  group  is  classified 
further  by  rates  of  stock  turnover, 
the  amounts  increase  as  stock  turn- 
over rates  increase. 

When  advertising  expenditures  in 
relation  to  sales  are  expressed  on  a 
per  turn  basis,  the  average  amount 
for  the  204  stores  in  the  small  cities 
is  $0.84  and  for  the  78  stores  in  the 
large  cities,  $1.10.  For  both  groups 
as  located,  the  amounts,  of  course 
decrease  as  the  rates  of  stock  turnover 
increase.  For  the  stores  in  the  small 
cities  which  turned  their  stock  less 


than  once,  the  average  amount  is 
$2.11,  and  from  this  as  a  maximum, 
the  expenditures  decrease  to  $0.19  for 
those  which  turned  their  stock  four 
times  and  over.  For  the  stores  in  the 
large  cities,  if  the  single  store  which 
turned  its  stock  less  than  once  is 
excepted,  the  expenditures  for  adver- 
tising decrease  from  $1.75  for  those 
that  turned  their  stock  one  to  two 
times,  to  $0.66  for  those  that  turned 
their  stock  four  times  and  over. 
There  is  an  advantage  in  expressing 
the  amounts  of  advertising  in  relation 
to  sales  per  single  turn,  inasmuch  as 
by  this  method  the  data  are  made 


TABLE  248 

AMOUNT  OF  ADVERTISING  PER  $100  OF  TOTAL  NET  SALES  PER  STOCK  TURNOVER,  FOR 
STORES  CLASSIFIED  BY  SIZE  OF  CITY  AND  BY  RATES  OF  STOCK  TURNOVER,  1919 


RttH  of 

Stock 
TUTOOver 

IhiBber 

of 
Btor«B 

UvertlHas  per  tlOO  of  Totol  Sot  Soles 

Advertising  per  »100  of  Total  Hot  Bales 
per  Stock  Turnover 

Bit* 

or 

Clt7 
(U  OOO'l) 

AoDUnt 

Per  Cent. 

AnoTsit 

Per  Cent. 

3     20     40     60     80  100  120  140  160 

5     20     49     6f     80  100  120  140  160  180 

tot»l 
(ATora^ ) 

282 

(2.2S 

100.0 

tl.02 

ttodv  1 

1  to  2 

2  to  S 

S  to  « 

S 
1S6 
100 
23 

1.72 
1.90 
2.44 
2.24 

2. SB 

76.4 
84.4 

ioe.4 

99.6 
lis. I 

2.29 
1.19 
0.9S 
0.66 
0.64 

224.6* 
US.7 

total 

1 

over    ^ 

""^ 

Totnl 
(Averfcgo) 

70.7 

0.B4 

DtoSor  1 

1  to  £ 

2  to  S 

3  to  4 

4  k  OTor 

e 

120 

iB 
10 

7 

1.S8 
1.76 
l.M 
1.22 
«r.B7 

70.2 
77.8 
W.4 
M.2 
58:.  7 

2.U 
1.09 
0.64 
0.36 
0.19 

206.9* 
106.9 
TBS.7 
3S.9 

18. « 

Dndnr 

— 

Tot»l 
(ATerkge) 

78 

2.85 

126.7 

1.10 

ttodar  1 

1  to  2 

2  to  3 
5  to  « 

4  k  oTor 

1 
16 
41 

13 

7 

?.»0 
2.f2 
2.64 
2.f.3 

5.:o 

128.8 
116.4 
126.2 
116.» 
146.7 

3.87 
1.76 
1.14 
0.77 
0.66 

' 

40  u^ 

^^^^ 

. 

^^^^^^ 

64.7 

ATsrecs  H.2i 


Avaraee  tl.02 

ViU  lenetb  not 


346 


TABLE  249 

COST    OF    MERCHANDISE   SOLD,    AVERAGE    INVENTORY,    1918    AND    1919,    AND   AVERAGE 

ANNUAL  STOCK  TURNOVER,  FOR  STORES  CLASSIFIED  BY  SIZE  OF  CITY  AND  BY 

AMOUNT    OF    ADVERTISING   PER   $100    OF    TOTAL    NET    SALES,    1919 


Slzo 

of 
city. 

Amoijnt  of 

Advertising 

per  $100  of 

Total 

Net  Sales 

Number 

of 
Stores 

Cost  of 

Merchandise 

Sold 

Average 

InventoiTr 

1913  &  1919 

Average  Annual  Stock  Turnover 

Rato 

( 

Per  Cent. 

(In  OOO's) 

Graphic                      Actual 
)     20     40      60      80  100    120 

Total 
(Average ) 

282 

$23,853,253 

$10,940,487 

2.2 

100.0 

Ifader  $1 
$1  to  i2 
$2  to  $3 
§3  &  over 

79 

100 

66 

37 

4,186,022 
5,733,595 
7,445,518 
5,488,123 

2,041,793 
3,350,806 
3,280,090 
2,367,798 

2.1 
2.0 
2.3 
2.4 

.Total  . 
(Average) 

: 

90.9 

104.5 
109.1 

^^^^^^^ 

Total 
(Average ) 

204 

11,492,072 

6,167,981 

1.9 

86.4 

1 

Under  $1 
fl  to  §2 
$2  to  *3 
tS  &  over 

72 
79 
39 
14 

3,598,129 

4,395,340 

2,717,964 

780,639 

1,806,214 

2,428,494 

1,469,938 

463, 335 

2.0 
1.8 
1.8 
1.7 

90.9 

ei.8 

Under 
40 

: 

77.3 

Total 
(Average) 

78 

12,361,186 

4,772,506 

2.6 

118.2 

1 

1 

Under  $1 
$1  to  $2 
$2  to  §3 
|3  &  over 

7 
21 
27 
23 

587,893 
2,338,255 
4,727,554 
4,707,484 

235,579 

922,312 

1,810,152 

1,804,465 

2.5 
2.5 
2.6 
2.6 

113.5 
113,6 
118.3 
113.2 

40  and 

: 

Averagd  2.2 


directly  comparable.  The  contrasts 
which  obtain  between  stores  of  dif- 
ferent location,  but  with  uniform 
rates  of  stock  turnover,  are  shown  by 
amounts  in  Table  248,  and  it  is  un- 
necessary to  review  them  in  detail. 

In  Table  249,  the  actual  annual 
rates  of  stock  turnover  are  shown  for 
stores  as  classified  in  Table  248.  This 
table  is  inserted  primarily  for  the 
purpose  of  supplying  the  details  used 
to  calculate,  in  Table  248,  the  adver- 
tising expenditures  per  $100  of  total 
net  sales  per  turn. 


D. — Summary. 

(1).  The  amounts  of  advertising 
expenditure  per  $100  of  total 
net  sales  generally  decrease  as 
the  inventories  per  $100  of 
total  net  sales  increase.  This 
holds  only  when  stores  are 
classified  without  regard  to 
size.  For  stores  of  a  given 
size,  the  direction  of  change 
is  uncertain. 

(2).  The  amounts  of  advertising 
expenditure  per  $100  of  total 


347 


net  sales  for  the  amount  sold 
per  $1  of  inventory  increase 
as  the  size  of  the  inventory  in 
terms  of  sales  increases.  This 
is  true  for  all  stores  and  for 
stores  of  a  given  size. 

(3).  For  stores  with  a  given 
amount  of  inventory  per  $100 
of  total  net  sales,  the  amounts 
of  advertising  per  $100  of 
total  net  sales  decreased  be- 
tween 1914  and  1918,  and 
1918  and  1919. 

(4),  For  stores  considered  without 
regard  to  size,  inventories  in 
terms  of  sales  decrease  as  the 
amounts  of  advertising  per 
$100  of  total  net  sales  in- 
crease. For  stores  of  a  given 
size,  they  remain  essentially 
constant  as  advertising  ex- 
penditures increase. 

(5).  The  proportion  of  selling 
expense  attributable  to  ad- 
vertising tends  neither  to  in- 
crease nor  to  decrease  as  the 
inventories  in  terms  of  sales 
increase. 

(6).  The  amounts  of  advertising 
expenditure  per  $100  of  total 
net  sales  per  stock  turnover 
increase  as  the  inventories  in 
terms  of  sales  increase. 

(7).  The  amounts  of  advertising 
expenditure  per  $100  of 
selling  expense  per  stock 
turnover  increase  as  the  in- 
ventories in  terms  of  sales 
increase. 

(8).  For  stores  Avith  a  given  rate 
of  stock  turnover,  advertising 


expenditures  in  terms  of  sales 
increase  as  the  stores  increase 
in  size. 
(9).  For  stores  with  a  given  rate 
of  stock  turnover,  the  amounts 
of  advertising,  measured  in 
terms  of  sales  alone  and  of 
both  sales  and  turnover,  are 
higher  in  large  than  in  small 
cities. 

3. — YEIARLY  AMOUNTS  OF  EXPENDITURE 
FOR  ADVERTISING  IN  RELATION  TO 
THE  AMOUNTS  OF  GOODS  SOLD  PER 
FULL-TIME   SALES-PERSON. 

The  present  discussion,  which  has 
to  do  with  the  amounts  expended  for 
advertising,  corresponds  to  the  simi- 
lar sections  relating  to  selling  expense 
and  to  wages  and  salaries,  with  the 
exception  that  tables  reflecting  the 
amounts  of  expenditure  under  dif- 
ferent conditions  of  wage  payment, 
are  omitted. 

For  the  analysis  of  the  amounts  of 
expenditure  for  advertising  in  rela- 
tion to  sales  per  full-time  sales-person, 
the  records  of  146  stores  in  each  of 
the  years  1914,  1918,  and  1919  are 
available  for  study. 

A. — Yearly  Amounts  of  Expenditure 
for  Advertising  per  $100  of  Total 
Net  Sales  and  per  $100  of  Selling 
Expense,  1919, 1918,  and  1914. 
The  stores  are  classified  in  Tables 
250  and  251,  first,  by  years,  and  sec- 
ond, by  the  amounts  sold  per  full- 
time  sales-person.     Two  methods  of 
expressing  the   advertising   expendi- 
tures  are   used.      The   amounts   are 
shown,  first,  for  each  $100  of  total  net 


348 


sales  or  selling  expense,  as  the  ease 
may  be,  and  second,  per  $100  total 
net  sales  or  selling  expense  per  $1,000 
sold  for  each  full-time  sales-person.* 
For  the  combined  years,  represent- 
ing the  experience  of  438  store-years, 
the  average  expenditure  for  advertis- 
ing per  $100  of  total  net  sales  is 
$2.28.      For    1914   the    amount    was 


*  The  methods  by  which  these  units  are 
computed  are  explained  on  page  4,  items 
22  and  24. 


$2.57 ;  for  1918,  $2.22 ;  and  for  1919, 
$2.20.  When  the  expenditures  are 
expressed  in  a  unit  of  sales  for  each 
$1,000  sold  per  full-time  sales-person, 
the  average  amount  for  the  com- 
bined years  is  $0.14.  For  1914  it  was 
$0.23;  for  1918,  $0.14;  and  for  1919, 
$0.11.  It  will  be  observed  that  the 
expenditures  for  advertising  meas- 
ured in  terms  of  sales  alone  decreased 
between  1914  and  1918,  and  1918  and 
1919,  respectively,  by  14  and  1  per 


TABLE  250 

AMOUNT  OF  ADVERTISING  PER  $100   OF  TOTAL   NET  SALES  PER  $1,000   OF   SALES  PER 

FULL-TIME  SALES-PERSON,  FOR  146  IDENTICAL  STORES  CLASSIFIED  BY  AMOUNT 

OF    SALES    PER    FULL-TIME    SALES-PERSON,    1919,    1918,    AND    1914 


jbKnmt  ot 
Mrnla*  per 
Fall-tlM 
Baloe-ponoo 
(In  OOO'd 

■oBbor 

of 
Sto  ra- 
ja ara 

Adrartlalng  par  tlOO  of  Total 
Bat  Sals3 

Advertlalng  par  $100  of  Total  Hot  Salee  par 
tlfOOO  of  Salsa  par  Full-tlma  Selas-poraon 

T*u« 

Aaouit 

Par  Cant. 

Aaount 

Per  Cant. 

Qraphio 
0      20      40      60      60   100    120 

Aetroal 

0     20      40     60      BO   100   130   140  150   180   200 

Total 
(ATorago) 

438 

tz.zs 

100.0 

to. 14 

' 

100.0 

', 

OUlar  tl2 
tl2  to  tie 
tie  to  tzi 

t«i  to  tSS 

tS2  ft  erar 

151 

107 

iia 

39 
£9 

2.32 
2.12 
2.27 
2.51 
2.24 

lOl.a 
93.0 
99.6 

UO.l 
96.2 

0.2S 
0.15 
0.12 
0.09 

o.oe 

178.6 
107.1 

1 

(lTar>«>) 

■ 

• 
1 

1 

1 

42.9 

1 

TotU 
(ATorsga) 

146 

2.20 

96.5 

0.11 

1 

OaSar  tl2 
tl2  to  tie 
tie  to  t24 
$24  to  tSS 
tSS  ft   OTOF 

IS 
30 
61 

ei 

19 

2.27 
1.56 
2.05 
2.69 
2.31 

99.6 

66.4 

69.9 
118.0 
101.3 

0.23 
0.11 
0.10 
0.10 
0.06 

164.3 
78.6 
71.4 
71.4 
42.9 

1«U 

1 

1 

»*tal 
(ATaraga) 

146 

2.22 

97.4 

0.14 

100.0 

t 

OMlaF  tl2 

tu  to  tie 
tie  to  te4 

tZ4  to  til 
|S2  ft    OTOF 

SO 
42 
5T 
14 

S 

1.97 
2.10 
2.49 

1.90 
1.67 

86.4 
92.1 

109.2 
83.3 
73.2 

0.19 
0.16 
0.13 
0.07 
0.04 

135.7 
114.3 

92.9 
50.0 
28.6 

isia 

^^^ 

1 

1 

! 

■^■i^Bi 

Total 
(ATaraga) 

146 

2.57 

112.7 

0.23 

164.3 

1 

Oblar  tl3 
tl2  to  tie 
tie  to  tZ4 
t24  to  tS2 
tS2  ft  oTar 

86 
36 

20 

4 
1 

8.59 
2.62 
2.73 
2.30 

0.35 

110.5 
U4.9 
119.7 
100.9 
15.4 

0.28 
0.19 
0.15 

200.0 
135.7 
107.1 
57.1 
7.1 

, 

1 

O.Ol 

■              : 

ATorage  t2.28 


ATaraga'  t0.14 


349 


cent.  Between  1914  and  1918,  and 
1918  and  1919,  the  amounts  per  $1,000 
sold  per  full-time  sales-person  de- 
creased by  $0.09  and  $0.03,  or  by  39 
and  21  per  cent.,  respectively.  This 
more  rapid  decrease  in  the  amounts 
from  year  to  year  is  directly  attribut- 
able to  the  increase  in  the  amounts 
sold  per  full-time  sales-person.  In 
1914,  1918,  and  1919,  respectively, 
these  amounts  were,  on  the  average, 
$11,345,  $15,613,  and  $20,437. 

When  the  stores  are  classified  as  in 
Table  250,  there  seems  to  be  no  defi- 
nite tendency  in  each  of  the  different 
years  for  the  amounts  of  advertising 
per  $100  of  total  net  sales  to  increase 
or  to  decrease  as  the  amounts  sold  per 
full-time  sales-person  increase.  "When 
the  amounts  are  expressed  in  terms  of 
sales  per  $1,000  sold  for  a  full-time 
sales-person,  however,  they  decrease 
in  each  of  the  years  as  the  sales  per 
full-time  sales-person  increase.  By 
expressing  the  amounts  in  this  form, 
they  become  directly  comparable,  in- 
a.smuch  as  both  advertising  and  sales 
are  reduced  to  a  unit  basis.  The  sizes 
of  the  decreases  from  year  to  year  are 
found  in  the  graphic  and  tabular 
parts  of  Table  250. 

In  Table  251,  the  advertising  ex- 
penditures are  shown  for  stores  classi- 
fied as  in  Table  250,  The  amounts, 
however,  are  given,  first,  as  propor- 
tionate parts  of  selling  expense,  and 
second,  as  proportionate  parts  re- 
duced to  a  per  $1,000  basis  of  sales 
per  full-time  sales-person.  Brief  con- 
sideration should  be  given  to  this 
table. 


For  the  combined  years,  advertis- 
ing expenditures  constitute  $21.18  of 
everv'  $100  of  selling  expense,  or,  ex- 
pressed as  a  percentage,  they  repre- 
sent 21.18  per  cent,  of  selling  expense. 
In  1914,  1918,  and  1919,  the  corre- 
sponding percentages  were  22.64, 
20.28,  and  21.15.  That  is,  they  de- 
creased between  1914  and  1918,  and 
increased  between  1918  and  1919. 
When  the  expenditures  are  further 
expressed  in  terms  of  $1,000  sold  per 
full-time  sales-person,  the  average 
amount  for  the  three  years  is  $1.31. 
In  1914  it  was  $2.00;  in  1918,  $1.30; 
and  in  1919,  $1.03.  That  is,  between 
1914  and  1918,  and  1918  and  1919, 
the  amounts  decreased. 

When  the  stores  in  each  of  the 
years  are  classified  as  in  Table  251 
by  the  amounts  sold  per  full-time 
sales-person,  the  advertising  expendi- 
tures, as  proportionate  parts  of  sell- 
ing expense,  neither  increase  nor 
decrease  regularly  as  the  sales  per 
full-time  sales-person  increase.  The 
general  tendency,  however,  is  for 
them  to  increase.  When  they  are 
computed  for  each  $1,000  sold  per 
full-time  sales-person,  they  decrease 
as  sales  per  full-time  sales-person 
increase.  By  the  use  of  this  more 
refined  unit,  the  stores  from  year  to 
year  and  from  group  to  group  are 
more  readily  compared  because  the 
expenditures  for  advertising  and  the 
sales  are  reduced  to  a  unit  basis.  The 
nature  of  the  amounts  wdth  the  in- 
creases from  year  to  year  and  from 
group  to  group  are  shown  in  tabular 
and  graphic  form  in  Table  251. 


350 


B. — Yearly  Amouiits  of  Expenditure 
for  Advertising  per  $100  of 
Total  Net  Sales  and  per  $100  of 
Selling  Expense,  for  Stores  Clas- 
sified by  Size,  1919,  1918,  and 
1914. 

For  the  discussion  of  the  amounts 
of  advertising  expenditures  for  stores 
of  different  size  and  with  different 
amounts  of  sales  per  full-time  sales- 
person, the  records  of  146  stores  are 
available  for  study  from  year  to  year, 


while  for  1919  alone  the  records  of 
269  stores  may  be  used.  Attention  is 
given,  first,  to  the  larger  group  of 
stores,  and  second,  to  the  stores  which 
are  identical  from  year  to  year. 

Based  upon  the  records  of  269 
stores  for  1919,  as  shown  in  Table 
252,  the  average  amount  of  advertis- 
ing expenditure  per  $100  of  total  net 
sales  was  $2.25.  As  the  stores  in- 
crease in  size,  the  expenditures  in- 
crease, the  minimum  being  $1.13,  for 


TABLE  251 

AMOUNT  OF  ADVERTISING  PER  $100   OF  SELLING  EXPENSE  PER  $1,000   OF   SALES  PER 

PULL-TIME  SALES-PERSON,  FOR  146  IDENTICAL  STORES,  CLASSIFIED  BY  AMOUNT 

OP    SALES    PER    FULL-TIME    SALES-PERSON,    1919,    1918,    AND    1914 


ABomit  of 
Salsa  par 
Pull-tljiia 
Bales-person 
(in  OOO'a) 

BuBbor 

Of 

fitora- 
Taara 

MT«Ftlalii«  per  $100  of  Sailing  Bipania 

Advartlalng  par  $100  of  Sailing  Sxpansa  par 
$1,000  ofSales  par  ?nll-tljM>Salao-pareon 

•x»m 

AaouDt 

Par  Cant. 

Aarant 

< 

Par  Cent. 

*"^°                    1    Actual 
)     2p     4p     60     8p  100  120  140 

*^"«                                      1  Aotnal 
)     20     40     60     80  100  12,0  140  160  180  200 

Total 
(ATarse*) 

438 

$21.}B 

100  .0 

$1.81 

100.0 

Dnlar  tl2 
tl2  ta  (la 
|16  to  |24 
i2i  to  %iZ 
»J2  ii  OTsr 

ISl 

107 
\13 
33 
23 

20.76 
19.35 
20.22 
24.96 

26.es 

98.0 
91.4 
95.6 
117  .8 
126.9 

2.21 
1.41 
1.06 
0.91 
0.72 

168.7 
107.8 

(iTaragt) 

,p^^^ 

69.S 
SS.O 

Total 
(A»«r«ro ) 

146 

21.1S 

99.9 

1.03 

78.6 

Undar  tl2 
%12  to  $16 
tl6  to  t24 
t24  to  %iZ 
$32  h  OTsr 

15 
30 

61 

ei 

19 

24.61 

IS. 3* 
18.11 
26.91 
26.82 

116.2 
72.5 
SS.S 

127.1 

I2s.e 

2.59 
l.U 
CSS 

o.ge 

0.72 

193.1 
84.0 
73. S 
74.8 
SS.O 

1S19 

— 

Total 
(AToraf^a ) 

146 

20.  2S 

95.8 

1.30 

99.2 

Oddar  tl2 
$12  to  $16 
$16  to  $24 
$24  to  $3S 
$SZ  k  OTar 

SO 
42 
37 
14 
9 

19.22 
ia.S7 
21.91 
18.83 
29.30 

90.7 

ea.l 

103.4 
88.9 
141.2 

1.89 
1.S9 
1.10 
0.6B 
0.80 

144.9 

106.1 
S4.0 
82.7 

61.1 

"■■^ 

(Araraga) 

146 

22.64 

106.9 

2.00 

152  .7 

Oidar  $12 
$12  t»  $16 
$16  to  $24 
$24  to  $32 

$32  i  OT»r 

86 
SS 

20 
4 
1 

2Cr.99 
23.38 
27.88 
20.17 
12. 4« 

99.1 
110.4 
131.B 

9e'.2 
e».e 

2.34 

1.67 
1.49 
0.73 
0.33 

178.6 
127  .S 
11S.7 
SS.7 
28  .2 

1814 

, 

'^^ '"  !* 

■^^^ 

— 

Anrags  tnua 


Avara^  tX«9X 


351 


the  stores  with  sales  under  $40,000, 
and  the  maximum  $2.81  for  those 
with  sales  of  $180,000  and  over. 
When  the  amounts  are  expressed  per 
$100  of  total  net  sales  per  stock  turn- 
over, the  average  for  the  entire  group 
is  $1.02.  As  the  stores  increase  in 
size,  the  expenditures  for  advertising 
in  terms  of  both  sales  and  stock  turn- 
over increase  from  a  minimum  of 
$0.75,  for  the  group  of  stores  with 
sales  under  $40,000,  to  $1.06  for 
those  with  sales  of  $80,000  to  $180,- 
000. 

When  the  stores  are  further  classi- 
fied by  the  amounts  sold  per  full- 
time  sales-person,  the  expenditures 
for  advertising,  expressed  in  terms  of 
sales,  do  not  show  a  tendency  to  in- 
crease or  to  decrease  regularly  as  the 
amounts  sold  per  full-time  sales- 
person increase.  In  some  of  the 
store-groups  the  number  of  instances 
are  too  few  to  serve  as  a  basis  for 
generalization.  The  averages,  how- 
ever, are  inserted  as  representing  the 
standards  determined  for  the  stores 
as  classified. 

When  the  expenditures  are  shown 
for  each  $100  of  total  net  sales  per 
stock  turnover,  the  amounts  for  each 
store-group  generally  decrease  as  the 
amounts  sold  per  full-time  sales- 
person increase.  To  this  general  rule, 
however,  there  are  numerous  excep- 
tions, although,  as  a  general  principle, 
the  turnover  rates,  which  accompany 
large  sales  per  full-time  sales-person, 
are  of  sufficient  size  in  most  instances 
to  reduce  the  expenditures  expressed 
in  this  form.  The  actual  amounts, 
together   with    the   increases   or   de- 


creases, are  shown  in  tabular  and 
graphic  form  in  Table  252. 

For  the  269  stores,  advertising 
expenditures  per  $100  of  total  net 
sales,  reduced  to  a  basis  of  $1,000 
sold  per  full-time  sales-person,  are 
shown  in  Table  253.  Expressed  in 
this  manner,  the  average  amount  for 
the  entire  group  is  $0.11.  For  the 
stores  that  had  sales  of  less  than 
$40,000,  the  average  is  $0.07,  and 
from  this  as  a  minimum  the  amounts 
increase  to  $0.12  as  a  maximum  for 
the  stores  with  sales  of  $180,000  and 
over.  For  the  stores  considered  as  a 
whole,  and  when  classified  by  size,  the 
expenditures  decrease  as  the  amounts 
sold  per  full-time  sales-person  in- 
crease. It  is  unnecessary  to  name 
these  amounts  inasmuch  as  they  are 
contained  in  the  table,  the  graphic 
summary  of  which  makes  a  compari- 
son of  them  easy. 

In  Table  254  a  somewhat  different 
form  of  analj^sis  is  presented.  The 
table  shows  the  amounts  of  sales  (in 
dollars)  secured  per  $100  of  adver- 
tising expenditure.*  For  the  269 
stores,  the  average  is  $4,435.  For 
those  with  sales  under  $40,000,  it  is 
$8,880,  and  from  this  as  a  maximum 
the  amounts  decrease  to  $3,557  for 
stores  with  sales  of  $180,000  and  over. 
That  is,  the  sales  secured  for  each 
$100  expended  for  advertising  de- 
crease as  the  stores  increase  in  size. 
When  the  stores  are  classified  by  size 
and  by  the  amounts  sold  per  full- 
time  sales-person,  the  sales  secured 
for  each  $100  of  advertising  tend,  on 

*  The  method  by  which  this  unit  is  com- 
puted is  explained  on  page  4,  item  11. 


352 


TABLE  252 

AMOUNT  OF  ADVERTISING  PER  $100  OF  TOTAL  NET  SALES  PER  STOCK  TURNOVER,  FOR 

STORES   CLASSIFIED   BY    SIZE   AND   BY    AMOUNT   OF   SALES    PER 

FULL-TIME    SALES-PERSON,     1919 


Aaeunt  of 
S>lM  t»r 

?\lll-tlBO 

E«lea-parBon 
(In  OOO'i) 

Hmbor 

of 
StoroB 

Adnrtlolng  por  (100  of  Total  Kot  Salts 

AdTortlalng  par  (100  of  Total  Vat  S«lea 
por  Stock  Turnover 

T«t«l 
*st  Smln 
(In  OOO'i) 

iaount 

far  Cant. 

ABount 

Par  Cent. 

Orapblo                           |  Actual 
0     2p     4p     60     SO   100   120   Hfl  160 

Orapblc 
0     20     40     60     80   100   120  140  160  ISO 

1    Actual 

Tottl 
(iLTor«s> ) 

269 

(2.2S 

100.0 

(1.02 

100.0 

Undor  112 
tl2  to  tie 
|1£  to  t2« 
tX*  to  tS2 

t:e  k  aiar 

90 
SB 

109 
44 

96 

2.10 
1.69 
2.17 

e.3e 

2.S9 

99.9 
76.1 
96.4 
104.4 

129.4 

1.24 

0.80 
1.09 
0.98 
1.09 

totU 
(Avarage) 

78.4 

^-    i 

Totil 
(AverA£8 ) 

31 

1.13 

so.e 

0.75 

75.6 

Cbjor  (12 
(12  to  (16 
(16  to  (24 

(24  to  (32 
(S2  t  OTcr 

» 
4 
7 
7 
4 

1.32 

o.ei 

0.62 
0.79 
2.02 

66.7 
40.4 
96.4 
93.9 

69.8 

0.94 
0.51 
0.63 
0.44 
1.26 

ttader  $40 

^^ 

60.0 
61. S 
43.1 

125. S 

— 

TotiJ 
(ATer«s« ) 

109 

1.37 

60.9 

0.76 

74.S 

Onaor  (12 
(12  to  (le 
(16  t«*(24 
(24  te  (32 
(»2  i  over 

16 
34 

91 

9 
19 

1.42 
1.67 
1.12 
1.27 
1.10 

63.1 
74.2 
49.6 
96.4 

S2.4 

0.95 
0.96 
0.62 
0.60 
0.62 

93.1 
96.1 

60.8 
58.8 
60.8 

|40  to  ^ 

i 

Tot»l 
(Aver«^e ) 

92 

2.01 

69.3 

1.06 

Undor  (12 
(12  to  (IS 
(16  to  (24 
(24   to  (32 
(32  «  ever 

4 
U 
50 
14 

9 

3.  55 

1. 01 
1.94 
1.97 
2.15 

148.9 
64.9 
66.2 
67.6 
94.7 

1.76 
0.96 
1.08 
0.94 
0.76 

172.& 
94.1 

10S.9 
92.2 

»eo  to  liso 

Tottl 
!A,.roKO) 

43 

2.81 

124.9 

1.04 

Dndor  (12 
(12  to  (16 
(16  to  (24 
(24   to  (32 
(32  &  07er 

1 
3 
1£ 
14 
10 

2.61 
1.52 
2.81 

z.ee 

3.49 

124.9 
67.6 
124.9 
lit. 2 
155.1 

1.12 

109.6 

1.08 

— ' — ^      • 

10S.9 
100.0 
106.9 

^^^^ 

^"T"" 

1.09 

• 

.iTCfA^    %2,a 


ATera^  1 1.03 


the  whole,  to  increase  as  the  amounts 
sold  per  full-time  sales-person  in- 
crease. This  is  not  true  for  the  stores 
treated  irrespective  of  size,  nor  for 
all  of  the  groups  as  classified  in  this 
form.  Generally  speaking,  however, 
there  is  a  direct  relation  between  the 


sales  secured  per  $100  of  advertising 
and  the  amount  of  goods  sold  per 
full-time  sales-person.  The  actual 
amounts  and  the  changes  from  group 
to  group  are  shown  in  Table  254. 

The  foregoing  discussion  relates  to 
the  records  of  269  stores  for  the  year 


353 


TABLE  253 

AMOUNT  OF  ADVERTISING  PER  $100   OF   TOTAL   NET   SALES  PER   $1,000   OF  SALES  PER 

FULL-TIME    S.VLES-PERSON,    FOR    STORES    CLASSIFIED    BY    SIZE    AND    BY 

AMOUNT  OF   SALES   PER  FULL-TIME   SALES-PERSON,    1919 


Tot.l 

*»onat  or 
&»!•■  psr 

PoU-tlM 

6«l«i-p«.~a<n 
(In  ^Oo'») 

AilTartlilng  par  $100  or  Total  lat  Salaa 

AdvsrtlAlAs  F«r  $100  or  Total  Vat  Salaa  par 
$1,000  or  Salaa  par  Pnll-tl«  Salaa-peraoB 

»i=ibar 

or 
Storas 

Par  Cant. 

iaonnt 

Par  Cant. 

(In  ooo  •) 

Amotmt 

*-"^«                    1    Aotual 
3     2p      40     60     80  100   120 

5     2p     40     60     80   100   12,0   140   160   190  2(J0 

Totml 
(AT«r«s«) 

2sa 

$2.23 

100.0 

io.ix 

100.0 

Dtidar  tl2 
112  t«  lis 
lie  to  »24 
t24  to  t32 
$32  k  eT«r 

so 

58 
lOS 
44 
36 

e.ie 

1.69 
2.17 
2.35 
2.89 

93.3 
73.1 
96,4 
104.4 
128.4 

O.tl 

0.12 
O.U 
0.09 
0.07 

i9o.a 

109.1 
100.0 
81.3 
63.9 

ToUl 

■ 

1 

1 

1 

Total 
(Averaga) 

31 

1.13 

50.2 

0.07 

63. S 

PoUr  tia 
|12  to  tie 
1l6  to  $24 
t24  to  i:2 

tS2  4  o»ar 

9 

« 
7 
7 
t 

1.38 
0.91 
0.32 
0.7S 
2.02 

58.7 
40.4 

3e.4 

33.3 

89.8 

0.13 
0.0« 
0.04 
0.03 
0.06 

ua.e 

S4.S 
36.« 

er.s 

64.5 

QDder  i-M 

■■■■■ 

Total 
(ATorag«) 

103 

1.37 

60.9 

o.oe 

72.7 

Oivlar  tl2 
tl2  to  tie 
$16  to  $24 
$24  to  $:2 
$32  i  o,« 

IS 
34 

31 
» 
13 

1.42 
1.87 

1.12 
1.27 
I.IS 

63.1 
74.2 
49.8 
56.4 

52.4 

0.14 
0.12 
0.06 
0.05 
0.03 

127.3 
109.1 
64.9 

t40  t«  tea 

1 

"21™ 

4S.S 
27.3 

Total 
(Avorage) 

«2 

2.01 

89.3 

O.IO 

90.9 

On<:ar  $12 
$12  to  $ie 
$16  to  $24 
$24  to  $32 
$32  »  OTor 

4 
16 
SO 
14 

• 

S.3S 

1.91 
1.94 

1.97 
2.U 

148.9* 
84.9 
86.2 
87.6 
94.7 

0.32 
0.14 
0.10 
0.07 
0.06 

290.9* 
127.3 
90.9 

leo  to  tiso 

^"^^" 

1 

1 

Total 
(Averaga) 

43 

t.ai 

124.9 

0.12 

• 

Ou!er  $12 
$12  to  $16 
$16  to  $24 
$24   to  $32 
$32  &  OTor 

1 
3 
15 
14 
10 

2.81 
1.52 

2.81 
2.66 
3.49 

124.9 
67.  B 
124.9 
118.2 

1S5.1* 

0.27 
O.U 
0.15 
0.10 
0.08 

245.6» 

100.0 
136.4 

• 

llSO  k  OTsr 

! 

I 

72.7 

' 

4T«rag«  $2,26 


Average  $0.U 


Pull  length  not  ehoan 


1919.  Because  of  the  fact  that  1919, 
in  many  respects,  was  an  exceptional 
year,  it  has  been  thought  of  interest 
to  classify  a  somewhat  smaller  group 
of  identical  stores  by  size  and  by  the 


amounts  sold  per  full-time  sales- 
person for  the  combined  and  the  indi- 
vidual years  1919,  1918,  and  1914. 
This  is  done  in  Tables  255  to  258, 
inclusive. 


354 


TABLE  254 

TOTAL  ADVERTISING,  TOTAL  NET  SALES,  AND  AMOUNT  OP  TOTAL  NET  SALES  PER  $100 

OF  ADVERTISING,  FOR  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT 

OF   SALES   PER  FULL-TIME   SALES-PERSON,    1919 


Antounb  of 
B»loa  pap 
Pull-tlme 
Sales-persoQ 
(In  000' a) 

Number 

of 
Store 0 

Total 
Advertising 

Total 

Net  Salae 

Total  Mat  Salsa  per  (lOO  of  Advertlalng 

totrnt 
H*t  «alea 

Amount 

Per  Cent. 

(In  OOO'b) 

Graphic                                                   Actual 
5     20     40     60     60   100   120   140   160  180  200  220  240 

Total 
(Average ) 

269 

(759,571 

(33.687,842 

(4,4J5 

100.0 

Ooder  |1£ 
|12   to  |16 
(16  to  |24 
(24  to  (32 
(32  9c  over- 

SO 
66 
103 
44 
96 

39.336 
83,336 
296.746 
1S1.37S 
156,780 

1,875.394 
4.923.136 
13.737,725 
7,722.827 
8,428.760 

4.768 
5.908 
4.598 
4.2S8 
3,463 

107.8 
133.2 

103.7 
96.0 
78.1 

(Average ) 

Total 
(Average ) 

91 

10,847 

963.213 

8.880 

7,579 
10,966 
12,168 
13.288 

4,951 

200.2 

onder  (12 
(12  to  (16 
(16  to  (24 
(24  to  (32 
(32  &  over 

a 

4 
7 
T 
« 

3,288 
1,167 
1.898 
1,897 
S,009 

249,200 
127,962 
230.167 
212.169 
143.731 

170.9 
247.2 
274.3* 
299.6* 
111.6 

•Oador  1*0 

Total 
(Average ) 

103 

60.647 

8,872,443 

7,291 

164.4 

titider  (12 
(12  to  (16 
(16  to  (24 
(24  to  (92 
(32  i  over 

16 
94 
31 
9 

19 

12,113 
32,841 
SO.  139 
7,S6S 
7,693 

630,429 

1,861,398 

1,800,658 

693,340 

666,624 

7,018 
8,972 
6,844 
7,846 
6,446 

158.2 
134.7 
201.7 
176.8 

190.4 

•lo  to  teo 

' 

Total 
(Average ) 

9S 

ei7,97» 

10,840.787 

4,873 

112.1 

leo  tolieo 

Holer  (IS 
(12  to  lie 

|16  to  |S4 

|24  to  |3B 
ISS  k  ovwr 

4 
U 

to 
u 

9 

13,130 
80,e2» 
Ue.969 
99,948 
23,812 

881,470 
l.eO«,B73 
6,887,847 
1,  722,931 
1,129,176 

S,881 
8,228 
6,184 

8,079 
4,700 

67.2 

iie.i 

116.2 
U4.4 

106.1 

1 
t 

Tetal 
(Averaige) 

49 

460,196 

16,011.969 

9,667 

60.2 

Onder  llS 
lis  to  lie 
lie  to  |84 

|S4  to  las 

.    |ae  k  over 

1 
S 

u 

14 
10 

10,800 
IBjTOS 
160,966 
138,266 
122,072 

884,298 
1.8*9,606 
8, 709,960 
6,184,993 
9,493,228 

6,674 
3,860 
«,79» 

t.ees 

tUOk  over 

148.8 
60.3 

64.8 

Average  (4,435 


full  leastb  not  ihoaa 


355 


In  Table  255  the  records  of  the  146 
stores  for  the  three  years  are  com- 
bined. The  average  expenditure  for 
advertising  per  $100  of  total  net  sales 
for  these  stores  is  $2.28.  The  smallest 
expenditure — $1.67 — is  for  stores  with 
sales  of  $40,000  to  $80,000.  From 
this  amount  as  a  minimum  there  is  an 
increase  to  $2.73  for  stores  with  sales 
of  $180,000  and  over.  That  is,  gener- 
ally speaking,  the  amounts  expended 
for  advertising  per  $100  of  total  net 
sales  increase  with  the  size  of  stores. 
Table  255  shows  also  the  amounts 
expended  for  advertising  per  $100  of 
total  net  sales  for  the  stores  further 
cla.ssified  by  the  amounts  sold  per 
full-time  sales-person.  By  consulting 
the  table  it  will  be  observed  that,  for 
stores  of  a  given  size-group,  the  ad- 
vertising expenditures  per  $100  of 
total  net  sales,  on  the  whole,  tend 
generally  to  decrease  as  the  sales  per 
full-time  sales-person  increase.  To 
this  general  rule  the  group  with  sales 
under  $40,000  constitutes  a  notable 
exception. 

When  the  expenditures  for  adver- 
tising are  expressed  per  $100  of  total 
net  sales  for  each  $1,000  sold  per  full- 
time  sales-person,  as  in  the  right-hand 
columns  of  the  table,  the  average 
amount  for  the  entire  group  is  $0.14. 
The  largest  amount  applies  to  stores 
which  had  sales  under  $40,000  per 
year.  For  the  remaining  groups  of 
stores,  the  expenditures  are  approxi- 
mately equal.  AVithin  each  group  of 
stores,  however,  the  amounts  decrease 
as  the  sales  per  full-time  sales-person 
increase.  For  the  entire  group,  ir- 
respective   of    size,    the    advertising 


expenditure  expressed  in  this  form 
was  $0.25  for  those  stores  in  which 
the  sales  per  full-time  sales-person 
were  less  than  $12,000,  and  $0.06  for 
those  in  which  the  sales  per  full-time 
sales-person  were  $32,000  and  over. 
Similar  decreases  hold  for  each  of  the 
different  groups.  By  expressing  the 
amounts  in  this  form,  both  advertis- 
ing expenditures  and  sales  are  re- 
duced to  a  unit  basis  and  are  directly 
comparable. 

In  Tables  256  to  258,  advertising 
expenditures  are  shown  per  $100  of 
total  net  sales  and  per  $100  of  total 
net  sales  for  each  $1,000  sold  per  full- 
time  sales-person  for  the  146  stores 
for  the  years  1919,  1918,  and  1914, 
respectively.  It  is  unnecessary  to 
review  in  detail  the  contents  of  these 
tables.  It  will  suffice  to  point  out 
that,  while  the  actual  amounts  differ 
from  store-group  to  store-group  and 
from  year  to  year,  the  direction  of 
change  in  the  amounts  was  substan- 
tially the  same  in  each  of  the  years 
as  in  the  combined  years. 

The  amounts  of  advertising  expen- 
diture for  the  two  groups  of  stores 
considered  immediately  above  may 
also  be  expressed  in  terms  of  selling 
expense.  This  is  done  for  the  269 
stores  in  Tables  259  and  260,  the  units 
of  measurement  in  Table  259  being 
per  $100  of  selling  expense  and  per 
$100  of  selling  expense  per  stock 
turnover,  and  in  Table  260,  being  per 
$100  of  selling  expense  and  per  $100 
of  selling  expense  for  each  $1,000  sold 
per  full-time  sales-person. 

In  1919  for  269  stores,  the  expen- 
ditures for  advertising  for  each  $100 


356 


TABLE  255 

AMOUNT   OF   ADVERTISING  PER  $100   OF  TOTAL   NET   SALES  PER  $1,000  OF  SALES   PER 

FULL-TIME    SALES-PERSON,   FOR    146    IDENTICAL   STORES    CLASSIFIED    BY 

SIZE   AND   BY   AMOUNT  OF   SALES   PER  FULL-TIME   S^VLES- 

PERSON,  1919,   1918  AND   1914,   COMBINED 


Cluiiriad 

Aaowit  of 
Salaa  per 

Pull-tlDO 

Saloa-person 
(In  OOO'a) 

NuDbar 

of 
Store- 
yaara 

Advertlalng  per  (100  of  Total  Ket  Salaa 

AdvartlBlng  per  (100  of  Total  Hat  Salaa  par 
(1,000  of  Salaa  per  I>all-tlj!ie  Salee-peraon 

lat  Balsa 

(In  OOO'a) 

Amount 

far  Cant. 

Aaoont 

Per  Cent. 

)      20      40      60      eo    100    120   140 

Ortphlc                                1    4^„j^ 
J     20     40     60      80  100   120   140   160   160 

Total 
(Averaga ) 

4se 

(2.28 

100.0 

(0.14 

1 

Dndar  tl2 
•12  to  |16 
(le  to  t2« 
t24   to  tZS 
tS2  k  OTer 

1£1 
107 

lie 
s» 

25 

2.52 
2.12 
2.27 
2.51 
2.2« 

101.8 
85.0 

68.6 
110.1 

se.2 

0.25 
0.15 
0.12 
0.09 
0.06 

1 

178.6 
107. 1 
85.7 

total 

(ATaraaa) 



Total 
(Ayerage ) 

125 

1.70 

74.6           0.16 

U4.3 

Usdar  tl2 
%12  to  (le 
(IE   to  (24 
(24  to  (22 
(52  »  OTer 

71 
25 

17 
10 

4 

l.ee 

1.54 

1.24 
1.78 
2.22 

82.5 

58. e 

54.4 

76.1 
97.4 

0.24 
0.10 

0.07 
0.06 
0.06 

171.4 
71.4 
50.0 

DuSar  i*0 

-iii— 

::^ 

Total 
(iTorago) 

165 

1.67 

75.2 

0.12 

85.7 

Oalar  (12 
(12  to  (16 
(le  to  (24 
(24  to  (i2 
(92  k  omr 

65 

«B 

se 

7 
7 

i.a2 

1.71 
1.42 

1.51 
O.Bl 

84.2 
75.0 
62.5 
66.2 
55.5 

0.19 
0.12 

o.oe 
o.oe 

0.02 

155.7 
85.7 
67.1 
42.9 

14.5 

$40  to  tao 

— 

Ibtal 

(Avaraxa ) 

108 

2.28 

100.0 

0.14 

100.0 

DBdar  (12 

(12   to  (18 
(16   to  (24 
(24   to  (S2 
(J2  k  o»or 

14 

51 
46 
12 
S 

S.U 
2.16 
2.21 
2.02 
2.06 

156.4 

S4.7 
96.9 
68.6 
90.4 

0.51 
0.16 
0.12 

O.oe 

0.06 

221.4* 
114.3 

es.7 

57.1 
42.9 

teo  to  tuo 

HZ" 

Total 
(Avaraga ) 

42 

2.75 

U9.7 

0.15 

92.9 

Ondar  (12 
(12  to  (16 
(16   to  (24 
(24   to  (52 
(S2  k  OTor 

5 
6 
17 
10 

7 

5.72 
2.86 
2.60 
£.84 
2.51 

165.2* 
125.4 
U.4.0 
124.6 
110.1 

0.56 
0.21 
0.15 
0.10 
0.07 

257.1* 
150,0 
a2.a 
71.4- 

5o'.a 

tiso  k  oTor 

_ 

, 

. 

Anr*et  (2.2S 


ATcrags  (0.14 

Pull  lon^tb  not  eiiOvL 


357 


TABLE  256 


AMOUNT  OF   ADVERTISING  PER  $100   OF  TOTAL   NET  SALES  PER  $1,000  OF   SALES   PER 

FUXIj-TiaiE   SALES-PERSON,   FOR   146    STORES   CLASSIFIED   BY    SIZE   AND   BY 

AMOUNT    OP    SALES    PER    FULL-TIME    SALES-PERSON,     1919 


Anotmt  of 
Salea  p«r 

Pull-tlaio 

Balaa-peraon 

(In  OOO'a) 

Umber 

or 

Stores 

AdTortlalng  par  (100  of  Total  Hat  Salsa 

AdTortlalng  per  (100  of  Total  Hot  Sales  per 
(1,000  of  Salea  per  Pull-tljao  Sales-person 

Claaairiad 

To-.«l 
I>t  S«:a> 

(IB  OOO'i) 

Ajacrunt 

for  Cant. 

Aaoont 

for  Cant. 

Oraphia                           |     Actual 
0     20      40     60     80  100  120   140  160 

Qraphlo 
0     20     40     60     80   100   120  1< 

Actual 
0 

Total 
(ATemge) 

146 

(2.20 

1 

100.0 

(O.U 

100.0 

ttador  (12 
(12  to  (IS 
(16  to  (24 
(24  to  (32 
(32  k  over 

IS 
50 
61 
21 
19 

2.27 
1.58 
2.05 
2.69 
2.31 

103.2 
70.9 
S3.2 
122.3 
105.0 

0.23 
O.U 
0.10 
0.10 
0.06 

209.1** 
100.0 

eo.s 

90.9 
64.5 

(ATftr&g«) 

— 

' 

Total 
(Avorane) 

14 

i.4e 

66.4 

0.09 

81.8 

' 

Dador  (12 
(12  to  (le 
(16  to  (24 
(24  to  (32 
(32  S  0T« 

6 
1 
4 
2 

2 

1.3S 
1.24 
0.71 
0.96 
3.43 

61.8 
56.4 
Z2.3 
43.S 

157. 3 

0.14 

0.09 
0.04 
0.04 
0.10 

127. S 

si.ar 

S6.4 

36.4 

90.9 

OaiaT  (40 

zz 

■■■■■■ 

TotU 
(Arerago) 

64 

1.28 

68.2 

0.06 

72.7 

ttadar  (12 
(12  to  (16 
(16  to  (24 
(21  to  (32 

(32  4  over 

8 

la 

18 
4 
'« 

1.33 

1.67 
1.08 
1.40 
0.S8 

60  .5 
71.4 
49.1 
6S.S 
40.0 

0.14 
0.11 
0.06 
0.05 

o.oa 

127.3 
100.0 
54.5 
45  .S 

ia.8 

tU  t«  (80 

Totol 
(Average) 

M 

1.97 

e«'.5 

0.11 

100.0 

1 

Onder  (12 
(12  to  (16 
(16  to  (24 
(24  to  (32 
(32  k  over 

t 
U 

SO 

7 
4 

S.02 
1.5S 
r.86 
1.91 
2.07 

828.2* 
70.5 
89.1 

ee.8 

94.1 

0.50 
0.11 
O.U 
0.07 
0.06 

454.5* 
100.0 
100.0 
63.S 
64.5 

(80  to  (ISO 

Total 
(Averbga) 

24 

2.65 

120  .S 

O.U 

100.0 

' 

i 
1 

tl80  ft  OTor 

Dnder  (12 
(12  to  (IS 
(16  to  (24 
(24   to  (32 
(32  h  OTsr 

9 
8 

7 

2.4S 

'2.99 
2.51 

IIO.S 
135.9 
114.1 

0.13 
O.U 
0.07 

• 

118.2 
100.0 
«S.6 

' 

Aier^ea  (2.20 


Avorags  (O.U 


PuU  length  not  f&oan 


of  selling  expense  constituted  $22.13. 
In  otiicr  words,  advertising  consti- 
tuted 22.13  per  cent,  of  selling  ex- 
pense. When  the  stores  are  further 
classified    by    size,    the    expenditures 


for  advertising  per  $100  of  selling 
expense  range  from  $18.28,  for  the 
stores  with  sales  of  $40,000  to  $80,000, 
to  $24.37  for  stores  with  sales  of 
$180,000  and  over.    That  is,  generally 


358 


speaking,  the  amounts  increase  as  the 
stores  increase  in  size,  or,  in  other 
words,  advertising  expenditures  for 
stores  of  increasing  size  increase  more 
rapidly  than  do  the  total  selling  ex- 
penses. When  the  advertising  expen- 
ditures per  $100  of  selling  expense 


are  reduced  to  a  per  stock  turnover 
basis,  the  average  for  the  entire 
group  is  $10.06.  For  those  stores 
with  sales  under  $40,000  it  is  $12.77. 
From  this  as  a  maximum,  the  amounts 
decrease  to  $9.03  for  the  stores  which 
had  sales  during  this  year  of  $180,000 


TABLE  257 

AMOUNT  OF  ADVERTISING  PER  $100   OF  TOTAL   NET  SALES  PER  $1,000  OF  SALES  PER 

FULL-TIME   SALES-PERSON,   FOR   146    STORES   CLASSIFIED   BY    SIZE   AND   BY 

AMOUNT    OF    SALES    PER    FULL-TIME    SALES-PERSON,    1918 


CtaaBiriad 

AmoTjilt  of 
Sales   per 
Pull-tlmo 
Saies-peraon 
(In  OOO'a) 

number 

of 
Storee 

Advertlalng  per  $100  of  Total  net  Saloa 

MvertlBlne  per  $100  of  Total  Hot  Ealea  per 
$1,000  of  Sales  per  Pull-time  Saloe-peraon 

Rat  Salss 

Aaonmt 

Per  Cent. 

Aiunmt 

Per  Cent. 

Oraphlc                        1    Actual 
3     20     40      60      80   100   120   140 

Orophle                               1     Actual 

3      20      40      60      80    100    120    140    160    180 

Total 
(Average) 

146 

$2.22 

100.0 

$0.14 

1 

100.  0 

Under  $12 
112  to  »16 
tie  to  t24 
t2i  to  $32 
(32  t  over 

50 
42 
37 
14 
3 

1.B7 
2.10 
2.49 
1.90 
1.67 

88.7 
94.6 
112.2 
65.6 
75.2 

0.19 

0.16 
0.13 
0.07 
0.04 

135.7 
114.3 
92. » 
50.0 
28.6 

(Average ) 

^^^                     * 

Total 
(Average) 

40 

1.52 

68.5 

O.IS 

Dnder  tl2 
$12  to  $16 
$16  to  $24 
$24  to  $32 
$32  4  over 

21 

7 
5 
S 
2 

1.56 
1.38 
1.06 
2.28 

cr.se 

70.S 

62.2 
47.7 
102.7 
4Cr.l 

0.18 

0.10 
0.06 
0.08 
0.02 

Alder  Uo 

... 

ll. 

71.4 

42.8 
57.1 
14.3 

— 

Total 
(Average) 

61 

1.63 

73.4 

0.12 

Dnaer  $12 
$12  to  $16 
$16  to  $2i 
$24  to  $32 
$32  i  over 

24 

20 
15 
2 

1.92 
1.62 
1.30 
0.61 

86.S 
7S.0 
58.6 
27.5 

CIS 
0.12 
0.07 
0.02 

128.S 
85.7 
SO.O 
14.3 

ito  to  teo 

- 

Total 
(Average) 

it 

2.SS 

107.7 

0.14 

100.0 

Dnder  $12 
$12   to  $16 
$16  to  $24 
$24  to  $32 
$32  k  over 

5 
11 
10 

5 

1 

2.66 

2.25 
2.58 
2.16 
2.03 

11S.4    ' 

101.4 

116.2 

9T.3 

91.4 

0.24 
0.16 
0.13 

o.oe 

0.06 

171.4 
U4.S 

S2.» 
57.1 
42.9 

%ao  to  tiao 

Total 
(Average) 

13 

2.63 

118.5 

0.15 

107.1 

tieo  t  OTor 

Obder  $12 
$12  to  $16 
$16  to  $24 
$24  to  $32 
$32  k  over 

4 
7 
2 

2. SI 
2.80 
1.73 

llS.l 
126.1 
77.9 

0.20 
0.14 

O.oe 

142.9 
100.0 
«S.9 

Average  $2.22 


359 


TABLE  258 

AMOUNT  OF  ADVERTISING  PER  $100   OF  TOTAL   NET   SALES  PER  $1,000   OF   SALES   PER 

FULL-TIME   S.VLES-PERSON,    FOR   146    STORES    CLASSIFIED   BY    SIZE   AND   BY 

AMOUNT    OF    SALES    PER    FULL-TIME    SALES-PERSON,     1914 


AaouBt  of 
Siaoi  por 

Pull-tUM 

S«loi-p«r«ofi 

(in  0O0'«) 

Sn>b«7 

or 

AdTortlaiAg  par  tlOO  of  Total  lat  Salsa 

AdvartlBlng  par  tlOO  of  Total  lat  Salea  par 
tlfOOO  of  Salea   par  Pcll-tljna  Salas-paraon 

Clutiriod 

Total 
«*t  tmlf 

(la  ooo'>) 

Far  Cant. 

ABOunt 

Far  Cant. 

Storaa         Aoount 

OrapMo                                 Actoal 
0      20      40      eO      80    100    120    140    160 

Crapble                            1  Aatual 
3     20     40      60      80   100   120   140   160 

Total 
Unngo ) 

14«             te.ST 

100.0 

tO.23 

100.0 

1 

96.1 

101.9 
106.2 
89.5 
13. e 

0.28 
0.19 
0.15 

O.oe 

0.01 

121.T 
82.6 

es.a 

34.8 
4.3 

tu  to  tie 
tie  to  tM 
t24  to  taz 

tS2  h  oTor 

S5 

20 

« 
1 

2.e2 

2.V, 
2.30 
0.3S 

— 

Unr><o ) 

■ 

Total 
(ATora^a) 

71 

l.SB 

72.4 

0.21 

91.3 

IJiidar  tl2 
tl2  to  tie 
tie  to  tz4 

t24  to  t32 
tsekorar 

«5 
IS 

e 

3 

2.10 
1.32 

1.7a 

1.48 

81.7 
51.4 
69.3 
57. e 

0.29 
O.IO 
0.10 

o.oe 

126.1 
43.3 
43.9 

se.i 

Oulu-  tto 

; 

^ 

Total 
(iToraga) 

48 

2.18 

S4.8 

82.8 

0.19 

UBdar  tl2 
tl2  to  tie 
tie  to  tz* 
t24  to  t32 
t5£  k  o»ar 

31 

10 
5 

1 
1 

2.oe 

2.11 

3.09 
3.47 
O.JS 

80.2 
82.1 
120.2 
13S.0 

u.e 

91.3 
6S.S 
78.3 
St. 2 
4.3 

0.15 
O.lfl 
0.13 
0.01 

»                                            [ 

(40  to  tec 

- 

Total 
(Avoraga) 

22 

2. Be 

1U.3 

95.7 

1 

0.22 

Ctader  tl2 
tl2  to  tie 
tie  to  t2« 
t24  to  tS2 
t52  »  o«r 

7 

e 

6 

2.9« 
2.82 
2.79 

115  rf 
109.7 
108. e 

i34.a 

9L.3 
S0.9 

tao  to  tiso 

0.31 

0.14 

Total 
(AToraga) 

s 

3.S2 

137.0 

0.27 

117.4 

Dodar  tl2 
tl2  to  tie 
tie  to  t2* 

t24   to  tSZ 
$32  k  OTar 

3 
1 
1 

3.72 
3.51 

2.83 

144.7 
136.6 

110.1 

156.5 
100.0 
69.6 

ai£0  »  OTor 

0.36 

O.IS 

AveragQ  $2.57 


and  over.  That  is,  the  amounts,  on 
the  whole,  decrease  as  the  stores 
increase  in  size. 

For  the  entire  group  of  stores,  the 
expenditures  for  advertising  per  $100 
of  total  selling  expense  increase  as 
the  sales  per  full-time  sales-person 
increase.      For    the    stores   classified 


Average  $0.23 

by  size,  the  direction  of  the  change 
is  uncertain.  Moreover,  when  the 
amounts  are  expressed  per  $100  of 
selling  expense  per  stock  turnover, 
they  seem  neither  to  increase  nor 
decrease  regularly  with  the  amount 
sold  per  full-time  sales-person. 
In  Table  260  the  stores  are  classi- 


360 


fied  by  size  and  by  the  amounts  sold 
per  full-time  sales-person.  Advertis- 
ing expenditures  are  shown  as  pro- 
portionate parts  of  selling  expense, 
reduced  to  a  unit  basis — $1,000  of 
sales  per  full-time  sales-person.  Stated 
in  this  form,  the  average  amount  for 


the  269  stores  is  $1.09.  For  those 
with  sales  under  $40,000,  it  is  $1.13, 
and  from  this  as  a  maximum,  the 
amounts  decrease  to  $1.04  for  the  92 
stores  with  sales  of  $80,000  to  $180,- 
000.  Within  each  group  of  stores, 
the  average  expenditures  for  adver- 


TABLE  259 

AMOUNT  OF  ADVERTISING  PER  $100  OF  SELLING  EXPENSE  PER  STOCK  TURNOVER,  FOR 
STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT  OF  SALES  PER  FULL- 
TIME  SALES-PERSON,    1919 


ABOTtnt  of 
Sal9S  par 
Pvill-tUn* 
S«le8-psrB(m 

Un  OOO'i) 

Miatber 

of 
StorM 

Advertising  per  $100  of  Selling  Bxpeneo 

AdTortlslug  por  $100  of  Selling  Zxpanu 
par  Stock  TumoTer 

Tot«l 

tMcnmX 

( 

r«r  Cant. 

Awmnt 
0 

Per  Cent. 

(m  coo'i) 

<^"f-^-^°                                 I     Actual 
20     40     60     BO   100    120   140   IM   150 

Orapblo 
20     40     so     60   100  12p   140   160 

Actual 

Total 
(ATQr«ge) 

269 

tM.lS 

100.0 

tio.oe 

100.0 

Cular  tl2 
»12  to  $16 
tl6  to  ti* 
t24  to  tSZ 
t3Z  &  OTor 

30 

se 

103 
44 
S< 

21.57 
17.43 
19.97 
24.50 
29.23 

97.3 
78.8 
90.2 
U0.7 
132.1 

12.69 
6. so 
9.99 
10.21 
10.44 

128.1 
82.5 

99.3 
101.5 
103.8 

(AT«r«ge) 

^"^^"*' 

Tot»l 
(ATor.go) 

31 

19.15 

' 

S6.S 

12.77 

126.9 

CJruJor  t-2 
»12  to  »16 
tl6  to  »24 
%1*  to  t33 
$32  &  ovor 

9 

4 
7 
7 
4 

18.16 
16.32 
12.79 
17.60 
38.05 

62.1 
73.7 
57.6 
80.4 
171.9 

12.97 
9.07 
9.84 
10.47 
23.78 

128.9 
90.2 
97.8 
104.1 
236.4* 

Oadn  %*0 

—   ; 

' 

"^^^^^^T 

1 

tot«l 
(ATor»«) 

103 

16.28 

82.6 

lo.ia 

101.0 

1 

Cndor  lia 
♦12  to  »16 

tie  to  t2« 

»2«   to  »32 

♦JZ   k    0T«F 

IS 
34 

31 
9 
13 

15.76 
19.43 
IT.OO 
17.75 
23.41 

71.2 
67.8 
76.8 
80.2 
105.6 

10.51 
U.43 
9.44 

8.45 
12.32 

104.5 
11S.6 
93.8 

84.0 
122.5 

}4o  to  teo 

^^^"^^"^ 

Total 
(ATorago) 

92 

20.03 

90.5 

10.54 

Dmn'  (12 
liz  to  tie 
tie  to  t2i 

t24   to  t32 
t32  »  o«r 

4 
IS 
50 
14 

9 

so.sa 

16.91 
20.46 
21.99 
16.93 

139.5 
76.4 
92.5 
97.4 

76.5 

16.25 
8.46 
U.37 
10.47 

e.os 

161.6 
84.1 

lao  to  tiso 

104.1 

60.1 

Total 
(Average) 

43 

24.37 

UO.l 

0.03 

; 

DBder  tl2 
$12  to  tie 
tie  to  $2« 

t24  to  tS2 

$32  «i   OTor 

1 
3 
IS 
14 
10 

24.06 
15.48 
20.20 
2S.B8 
34.51 

106.7 
70.0 
91.3 
U6.9 
155.9 

9.62 
5.34 

7.77 
9.95 
10.78 

»1B0  »  cjT«r 

53.1 
77.2 

107.2 

ATorago  |10,C6 

*Pull  langth  not  ahom 


361 


TABLE  260 


AMOUNT  OF  ADVERTISING  PER  $100  OP  SELLING  EXPENSE  PER  $1,000   OF  SALES  PER 

FULL-TIME    SALES-PERSON,    FOR    STORES    CLASSIFIED    BY    SIZE    AND    BY 

AMOUNT  OF   SALES  PER   FULL-TIME   SALES-PERSON,    1919 


^nmt  of 
S*l««  por 

mn-tiM 
(is'ooo^r 

of 
»t«r«« 

AdTartUiBS  par  (100  of  SaUlae  lipaiiM 

Advertising  par 
(1,000  of  Saloa 

(100  of  Sailing  Sipenia  par 
par  Ptai-tlna  Salae-peraoa 

ciuiiri*a 

Total 
lot  Sadaa 
(lo  ooo'm) 

A«.t 

tmr  Cant. 

AKont 

Par  Cant. 

OrapUs                                1 
20      40      6p     eo   190    120   1^    160  180 

Actaal 

0     20     40 

Oraphle                                 1  Aatnal 
60     80   100   120   1^0  1^  1^ 

To«d 

ttQ 

(22.13 

100.0 

(1.09 

100.0 

Ondar  (12 
(12  to  (16 
(le  to  (24 
(24   to  (32 
(32  k  OTor 

30 
50 

103 
44 
36 

21.57 
17.43 
19.97 
24.60 
29.23 

»T.» 

78.8 
90.2 
110.7 
132.1 

2.U 
1.23 

1.05 

0.89 
0.71 

194.5* 
112.8 
9«.S 
61.7 
68.1 

(ATerft^) 

Total 
(ATorage) 

31 

la.u 

86.3 

1.13 

US  .7 

Ikidar  (12 
(12  to  (16 
(16  to  (24 
(24  to  (32 
(32  k  OTor 

a 

4 
7 
7 
4 

18.16 
16.32 
12.79 
17.80 
38.03 

82.1 
73.7 
57.8 
80.4 
171.9 

1.81 
1.12 

0.64 
0.62 
1.09 

166.1 

102  .a 

58. T 
56.9 
100.0 

Vmiar  (40 

1 

ii... 

1 

Total 
(ATara««) 

103 

18.28 

82.6 

1.10 

100.9 

1 

Oulsr  (12 
(12  to  (16 
(16  to  (24 
(24   to  (32 
(S2  k  o»«p 

16 
34 

31 

» 
13 

15.76 
19.43 
17.00 
17.75 
23.41 

71.2 
67.8 
76.8 
80.2 
105.8 

1.57 
1.34 

0.90 
0.56 
0.55 

144.0 

122.9 
82.6 
60.9 
50.5 

(40  to  (80 

^^^^^^^ 

• 

• 

Total 
(ATorag*) 

92 

20.03 

90.5 

1.04 

9S.4 

ttador  (12 
(12  to  (IS 
(16   to  (24 
(24   ts  (32 
(32  k  oT«r 

4 
1» 
fiO 
14 

• 

39.88 

16.91 
20. 4« 
21.99 
16.93 

139.5 
76.4 
92.5 
99.4 
76. S 

2.97 
1.25 

i.oe 

0.81 

0.44 

272.S* 
U4.T 
99.1 
74. S 
40.4 

(eo  to  (ISO 

— 

1 

Total 
(Avera^o) 

4S 

M.ST 

110.1 

1.06 

96. S 

1 

OaiT  (12 
(12  to  (16 
(16  to  (24 
♦24  to  (32 
(32  k  OTar 

1 
S 

u 

14 

10 

2«.0« 

IS  .48 
20.20 
25.88 
34.51 

106.7 
70.0 
91. S 
U6.9 
1SS.9 

2.30 
1.08 

1.06 
0.94 
0.82 

, 

(ISO  k  OTV 

99.1 
97.2 
66.2 
76.2 

' 

' 

' 

Av*r«ga  leS.lS 


Aver age  $1.00 

Pull  length  not  shova 


tising,  measured  in  this  unit,  decrease 
as  the  amounts  sold  per  full-time 
sales-person  increase.  For  those  stores 
in  which  the  full-time  sales-person 
sold  less  than  $12,000,  the  average 
amount  is  $2.12.  It  is  $0.71  for  those 
in  which  the  average  sales  per  full- 


time  sales-person  were  $32,000  and 
over.  Similar  decreases  hold  for  each 
of  the  groups  of  stores  when  classified 
by  size. 

In  Tables  261  to  264,  inclusive,  the 
advertising  expenditures  per  $100  of 
selling  expense  for  146  stores  for  the 


362 


combined  and  individual  years  1919, 
1918,  and  1914,  are  set  out  in  detail. 
The  basis  for  classification  is  the  same 
as  that  used  in  Tables  255  to  258, 
inclusive,  but  the  amounts  are  dif- 
ferently expressed. 


For  the  combined  years,  as  shown 
in  Table  261,  the  average  expenditure 
for  advertising  per  $100  of  selling 
expense  is  $21.18.  For  those  stores 
which  had  sales  of  $40,000  to  $80,000 
it  is  $18.19,  and  for  those  which  had 


TABLE  261 

AMOUNT  OF  ADVERTISING  PER  $100   OP   SELLING  EXPENSE   PER  $1,000   OF  SALES  PER 

FULL-TIME   SALES-PERSON,    FOR   146    IDENTICAL   STORES    CLASSIFIED   BY    SIZE 

AND     BY     AMOUNT     OF     SALES     PER     FULL-TIME     SALES-PERSON, 

1919,    1918,    AND    1914,    COMBINED 


Claiilflal 

Total 
(«t  Salas 

AnouBt  of 
Bales  par 
full-tlM 
fialaa-pereon 
(in  OOO't) 

IhHttbar 

of 
Btcro- 
jaara 

Ad7artlBlng  p- r  (100  of  Sailing  Bzpanaa 

Advertlalng  par 
(1,000  of  Salai 

(100  of  Sailing  Ixpanaa  par 
par  Pull-tlma  Salaa-jerson 

Aooiait 

Par  Cant. 

Aaoimt 

Par  Cant. 

(Id  000'») 

}     20     40     60     80  100   120  140 

>     20     40     60 

Orapblo                                   JAotuU 
80  lOO  120  140  160  180  2001 

total 
(Arerage ) 

438 

(21.18 

i 

100.0 

(l.Sl 

100.0 

(12  to  tlS 

(le  to  U* 
t24  to  Ise 

|32  &  oTor 

151 
107 

lis 

3S 
2S 

20.76 
19.33 
20.22 
24.96 

28.se 

B8.0 
91.4 
«5.6 
117.8 
126.8 

2.21 
1.41 

1.06 
0.91 
0.72- 

168.7 

107.6 
80.9 
69.6 
55.0 

(AToras*) 

1 
1 

Total 
(AToraga) 

12S 

19.80 

S3.S 

1.90 

14S.0 

1 

uadar  tl2 
tl2  to  tie 
(le  to  (24 
(24  to  (S2 
(52  k  OTar 

71 

ss 

17 
U 

4 

1S.4* 
19.43 
17.64 
28.77 
44.26 

8T.8 
91.7 
83.3 
135.8 
209.D* 

2.38 
1.42 

0.9S 
1.05 
1.19 

181.7 
108.4 
71.0 
80.2 
90.8 

VDitT  UO 

' 

1 
1 

Total 
(Avarago) 

1£S 

18.19 

85. « 

1.36 

103.8 

1 

ttadar  (12 
(12  t«  (16 
(16  to  (24 
(24  to  (32 
(32  k  over 

es 

46 
3S 

7 
7 

17.76 
18.07 

IB. 65 
21.08 
20.06 

83.9 
85.3 
88.1 
S9.5 
94.7 

1.78 
1.31 
1.02 
0.77 
0.47 

13S.9 
100.0 

77.9 

tto  to  tso 

^^^^^^^, 

^^"^^"""""^ 

1 

Totol 
(Avaraga) 

108 

21.26 

100.3 

1.28 

1 

' 

Ondar  (12 
(12  to  (16 

(16  to  (24 
(24  to  (32 
(32  k  ovar 

14 
91 
46 
1£ 
5 

29.76 
19.41 
21.49 
19.62 
18.13 

126.3 
91.6 

101.5 
92.6 
85.6 

2.64 

1.40 

l.is 

0.73 
O.SO 

201.5 
106.9 
86.3 

i&o  to  (leo 

• 

Total 
(ATaraga ) 

4e 

22. 5S 

106.5 

1.11 

1 

ODdar  (12 
(12  to  (16 
(16   to  (24 
(24  to  (32 
(32  1.  o,.r 

S 
6 

17 
10 

7 

25.20 
20.41 
19.82 
26.87 
29.75 

119.0 
96.4 
93.6 
126.8 
140.5 

2.41 
1.52 
1.01 
0.97 
0.81 

JlBO  i  onr 

, 

i 

61.8 

ATon«*  li.n 


roll  leugtb  not  tbova 


363 


TABLE  262 


AMOUNT  OF   ADVERTISING  PER  $100  OF   SELLING  EXPENSE   PER  $1,000   OF  SALES  PER 

FL'LL-TIME    SALES-PERSON,    FOR    146    STORES    CL.VSSIFIED    BY    SIZE    AND 

BY  AMOUNT  OF  SxVLES  PER  FULL-TIME  SALES-PERSON,   1919 


Aatnint  of 
S.li>.   poi- 

p\iH-ti»o 

Soltto-pxrooa 
(la  OOO'.) 

of 
Stoi-M 

ftd,«^i.i«8  p-  tioo  o,  s.m.s  arp-"          1             Vi.'SS?  oflSr.*^?  ^n^Tt^S^YirJ^r.?.' 

TOtO 
lot  S<loo 
(IB  OOO'o) 

JUKSBt 

f  «r  Otcft. 

^ 

Tor  Cor.t. 

Qropblo 
J     W      40      eO      so   100   120  140 

Aotcol 

)      20      40      ep      ep   100    ISO    140   160  ISO  2O0 

Sotftl 
(Inrogo) 

14S 

t21.U 

100.0 

tl.03 

100.0 

ObAv  tu 

tl2  to  tie 
tie  to  t34 
t£4  to  t32 
tsa  ft  onr 

U 
SO 

U 

ai 

u 

a4.6i 
u.se 
u.u 
xs.n 

2e.B2 

U6.4 
7T.9 

es.e 
una 
I2e.s 

3.83 

lao 
o.ge 
o.se 

0.71 

24S.6* 

Totd 
Utcks*! 

83.3 
B5.1 

ee.9 

1 

1 

«>tol 

Uwoa*) 

M 

91.93 

loc.o 

1.3T 

133.0 

ttoe«r  tl2 
tu  to  tie 
tie  to  t24 

tS4  to  t9< 
%S»   ft    OTW 

8 

4 
* 
S 

u.sa 
is.sa 

10.08 
80.33 

48.se 

si.a 

71.4 

•T.8 

•ea 

«W.7» 

1.97 
104 

o.si 

0.7» 
1.40 

191.3 
110.7 
49.S 

Oidftr  ttO 

-— 

^mmam 

13S.9 

1 

1 

lotad 

M 

17.18 

81U 

i.oe 

101.9 

U».l»«o) 

e 
u 
u 

4 

e 

13.U 

u.oe 

18^4 
23.08 
10  .S8 

ea.e 
ae.a 
T«.a 
aos.a 
ae.T 

1.5» 
1.28 
0JB1 
0.86 
0.48 

133.0 
124.3 
84. S 

83.3 
46. S 

•«a  to  teo        tu  to  tie 

)1S  to  t2« 
tM  to  t3t 
»32ft  r^F 

.^^^_____ 

1 
1 

?t.t«l 
(iTorogo) 

M 

U.3« 

S1.S 

1.08 

102.9 

1 

OBdor  tu 
tu  to  tu 
tu  to  %M 
t24  to  tSS 
taftorcr 

a 
u 

30 

7 
« 

seas 

u.ao 

M.70 

es.es 
is.u 

S«8.S» 
M.3 
S3.X 

107.1 

S.61 

O.ge 

1.08 
0.89 
0.44 

644.7* 
95.1 

10S.9 
8C.S 
42.7 

lea  to  tiso 

1 
1 

»>t.l 
(Anrogo) 

S4 

ta.n 

ioe.4 

0.S4 

91.3 

• 

1 

1 

tlSO  ft  nar 

Cedar  tu 
tu  to  tie 

S 

e 

7 

1T.45 
37.88 

W.7S 

ea.8 
ux.a 

140.7 

o.ea 

1.00 
0.81 

89.3 
97.1 

78.e 

1       t24  to  t33 

^^^^1 

•"""" 

; 

*7u;.l  length  Bot  ohjwn 


sales  of  $180,000  and  over  it  is  $22.55. 
Over  the  entire  range  of  sizes,  the 
amounts  increase  as  the  stores  in- 
crease in  size.  When  the  stores  are 
further  classified  by  the  amounts  sold 
per  full-time  sales-person,  the  expen- 
ditures for  advertising  for  the  entire 


group,  irrespective  of  size,  increase 
as  the  amounts  sold  per  full-time 
sales-person  increase.  For  stores  of 
a  given  size-group,  however,  this  ten- 
dency is  not  so  evident.  For  the 
small  stores — those  with  sales  of  less 
than  $80,000 — the  amounts  seem  gen- 


364 


erally  to  increase  as  the  sales  per  full- 
time  sales-person  increase.  For  the 
other  two  groups,  the  direction  of 
change  is  uncertain. 

When  the  expenditures  for  adver- 
tising are  shown  per  $100  of  selling 
expense  for  each  $1,000  sold  per  full- 


time  sales-person,  the  average  for  the 
entire  group  is  $1.31.  The  largest 
amount — $1.90 — applies  to  the  stores 
with  smallest  sales,  and  the  smallest 
amount — $1.11 — to  those  having  larg- 
est sales.  That  is,  over  the  entire 
range  of  sizes,  the  expenditures  ex- 


TABLE  263 

AMOUNT  OF   ADVERTISING  PER  $100  OF  SELLING  EXPENSE   PER   $1,000   OF   SALES  PER 

FULL-TIME    SALES-PERSON,    FOR    146    STORES    CLASSIFIED    BY    SIZE    AND 

BY  AMOUNT  OF  SALES  PER  FULL-TIME  SALES-PERSON,   1918 


Aaount  of 
S>lo>  par 
FiOl-tljM 
Salea-peraoD 
(In  OOO'i) 

■nbar 

of 
Storoa 

Ad<artlali>e  s»r  $100  of  E«Uln«  BiiMns* 

AdTartlslng  par  $100  of  Sailing  Expanaa  par 
$1,000  of  Saloa  par  Pull-tlaa  Salaa-poraon 

Total 
Sot    SalM 

ABixmt 

Far  Cant. 

Aaoimt 

Per  Cant. 

0      30      40      60     80    100   120    140   160   180 

<=r'P^l»                                     Actual 
0      20      40      60      80    100   120   140   160 

Total 
Urerago) 

148 

$20J8 

100.0 

$1.30 

100.0 

1 

Vnimr  $12 
$12  to  $18 
$16   to  $24 
$24  to  $33 
$33  h  onr 

SO 
42 
37 
14 

S 

19.23 

10.67 
21.S1 
13.83 
29.90 

94.S 
92.1 

108.0 
92.9 

147.4 

1.89 
1.39 
1.10 
0.69 
0.80 

145.4 

106.9 

Uvoraso) 

1 

^^^ 

53.1 
61.5 

, 

1 
1 

total 
(ATorago) 

S0.9 

1.56 

120.0 

"•" 

1 

' 

Itedar  $12 
$12  to  $ie 

$16   t.  $24 

$24  to  $J2 
$32  h  onr 

21 

7 
S 

15.72 

19.30 

i4.oa 

77.5 
SS.3 
69.3 
173.8 
12V.3 

1.80 
1.43 
0.75 
1.3S 
0.81 

138.5 
110.0 
57.7 
96.2 
62.3 

VaiKf  $40 

1 

1 
1 

3         1      32.30 

1 

1 

Total 
(Areraga) 

CI                17.42 

63.* 

1.32 

lOl.S 

1 

Dndar  $U 
$12  to  $ie 

$16  to  $24 
$24   to  $32 
$32  .  ovr 

24        j      13.34 
30               17.05 
15               16.17 
3        i      17.53 

90.4 

84.1 

79.7 
86.7 

1.73 
1.29 
0.69 
0.62 

133.1 

96.9 
68.3 
47.T 

$40  to  $80 

IB^^iM^iV    f 



1 
1 

Total 
(Averago) 

S2        1      21.83 

107.6 

1.28 

96.5 

1 

Qad«r.$lS 
$12  to  $1» 
$1«  to  $24 
$24  to  $32 
$32  h  orar 

S        '      26.43 

130.3 
108.6 
109.8 
83.6 
145.2 

2.36 
1.S8 
1.11 

0.63 
0.81 

181.5* 
120.0 
85.* 
4S.S 
63.5 

$80  to  $ieo 

^^T^ 

10 
5 

1 

22.27 
le.95 
29.44 

20.99 

"^■■■■■■^■T 

■■■" 

r 

Total 
(ATorago) 

13 

103.3 

1.17 

90.0 

1 
1 

$1S0  «  oTsr 

Vaimr  $12 
$12  to  $1« 
$16    to  $24 
$34  to  $3S 

$3et  oTw 

4 
7 
3 

17.47 
2a.97 
18.57 

86.1 
U2'.8 
91.6 

- 
1.36 
1.13 
0.67 

106.2 
66.9 
Sl.S 

, 

^— 

^^^^^^^^  1 

AT«r«^  $1.30 

•?UU   langt^  not    choi 


365 


TABLE  264 


AMOUNT  OF  ADVERTISING  PER  $100  OF  SELLING  EXPENSE  PER  $1,000   OF  SALES  PER 

FULL-TIME    SALES-PERSON,    FOR    146    STORES    CLASSIFIED    BY    SIZE    AND 

BY  AMOUNT  OF  SALES  PER  FULL-TIME  SALES-PERSON,    1914 


Aammt  of 
Balea  per 
Poll-tlae 
Saloe-perBPn 
(in.ooo'e) 

Boater 

of 
Store* 

Advertising  per  $100  of  Selling  Bxpesae 

Advertlalng  per  $100  of  Selling  Sxpanso  per 
$1,000  of  Sales  per  Pull-tlno  Sales-porcon 

cussinsd 

Tot.l 
Bet  &*!•• 
(In  OOC'e) 

taoant 

tor  Cent. 

Amount. 

Per  Cent. 

QrspUo                     1  Aetual 
3     20     40     60     80   100  120  140 

Graphic                      1    ^^^^ 
)     20     40     60     80   100  120  1^ 

Total 
(ATersge ) 

146 

$22.64 

100.0 

$2.00 

100.0 

Dbder  $12 
$12  to  $16 
$16  to  $24 
$24   to  $32 
$32  &  OTor 

86 
5S 

20 

4 
1 

20.99 
23.36 
27.85 
20.17 
12.46 

92.7 
103. 5 
125.0 
89.1 
55.0 

2.34 

1.67 
1.49 
0.73 
0.33 

117.0 

63.5 

(AT«rags) 

— 

56.5 

16.5 

— ^ 

Total 
(Average) 

71 

20.29 

89.6 

2.26 

113.0 

Older  $12 
$12  to  $16 
$16  to  $24 
$24  to  $32 
$32  »  over 

45 

15 

e 
» 

19.73 
19.81 
26.94 
21.99 

- 

87.1 
87.5 
119.0 
97.1 

2.74 
1.43 

1.45 
0.S2 

137.0 
71.5 
72. S 
41.0 

Under  Uo 



Total 
(Average) 

4a 

19.90 

87.9 

1.77 

88.5 

Onilar  $12 
$12  to  $16 
$16  to  $24 
$24  to  $32 
$32  k  over 

SI 

10 
6 

1 
1 

18.52 
19.99 
51.06 
19.20 
12.46 

80.9 
88.3 
157.2 
84.8 
S5.0 

1.90 
1.46 
1.76 
0.67 
0,55 

95.0 
73.0 
88.0 
33.5 
16.5 

$40  to  ^ 

^" 

— 

Total 
(Average) 

22 

24.60 

108.7 

1.91 

95.5 

Older  $!£ 
$12  to  $16 
$16  to  $24 
$24  to  $32 
$32  k  over 

» 

e 

22.74 
23.87 
29.11 

100.4 
104.1 
128.6 

2.35 
1.75 
1.51 

117.5 
86.5 
75.5 

|eo  te  (180 

Total 
(Average) 

B 

£5.25 

Ul.S 

1.96 

98.0 

UnHer  $12 
$12  to  $16 
$16  to  $24 
$24   to  $32 
$32  t  over 

s 

1 
1 

26.20 

26.50 
21.54 

111.3 
116.2 
95. 1 

2.41 

1.76 
1.20 

120.5 
87.5 

liao  &  oTsr 

I 

Average  $22 .64 


Average  |2*00 


pressed  in  this  form  decrease.  Within 
each  group  of  stores,  moreover,  when 
they  are  further  classified  by  the 
amounts    sold    per    full-time    sales- 


person, the  advertising  expenditures 
decrease.  For  the  entire  group  in 
which  the  sales  per  full-time  sales- 
person are  less  than  $12,000,  the  ex- 


366 


penditure  for  advertising,  expressed 
in  this  form,  is  $2.21,  while  for  those 
in  which  the  amount  sold  per  full- 
time  sales-person  is  $32,000  and  over, 
the  amount  is  $0.72,  Similar  de- 
creases hold  for  each  of  the  groups.* 
The  basis  of  classification  normally 
requires  this. 

In  Tables  262  to  264,  the  expendi- 
tures for  advertising,  for  stores  classi- 
fied as  in  Table  261,  are  shown  for 
the  years  1919,  1918,  and  1914,  re- 
spectively. The  amounts  for  the  dif- 
ferent groups  of  stores  from  year  to 
year,  as  well  as  the  tendencies  which 
they  may  have  to  increase  or  to  de- 
crease when  differently  classified,  are 
fuUy  set  out  in  the  tables,  and  it  is 
unnecessary  to  review  them  in  detail 
at  this  point. 

In  considering  these  tables,  the 
reader  should  remember  that  care  has 
been  taken  to  eliminate,  so  far  as 
possible,  all  elements  of  error  in  the 
data  and  to  classify  the  stores  in  the 
detail  necessary  to  make  comparisons 
of  significance.  To  have  printed  the 
frequencies  with  which  the  different 
items  occur,  or  even  the  highs  and 
lows  in  the  detail  provided  for  in  the 
tables,  would  have  unduly  compli- 
cated the  tabulations  and  probably 
been  of  little  value  in  the  interpreta- 
tion of  the  norms  or  standards  shown. 
One  of  the  many  reasons  for  showing 
the  expenditures  in  the  form  of  com- 
plex units  has  been  to  obviate  the 
necessity  for  elaborating  the  tabula- 
tions. 

*  There  is  a  slight  exception  to  this  rule 
for  the  stores  having  annual  sales  less  than 
$40,000. 


C. — Yearly  Amounts  of  Expenditure 
for  Advertising  per  $100  of  Total 
Net  Sales  and  per  $100  of  Selling 
Expense,  for  Stores  Classified  by 
Size  and  hy  Size  of  City  in 
Which  Located*  1919,  1918,  and 
1914. 

Analysis  has  shown  that  the  size 
of  the  city  in  which  stores  are  located 
helps  to  determine  the  amounts  of 
expenditure  for  store  operations.  In 
order  to  take  note  of  this  factor  in 
the  discussion  of  advertising  expen- 
ditures, a  group  of  103  stores  with 
annual  sales  of  $40,000  to  $80,000  in 
1919  has  been  classified  in  Tables  265 
to  268,  inclusive,  by  location  and 
further  by  the  amounts  of  sales  per 
full-time  sales-person. 

Table  265  shows  that  the  average 
expenditure  for  advertising  per  $100 
of  total  net  sales  for  the  89  stores 
located  in  cities  with  population 
under  40,000  was  $1.32.  It  also 
shows  that  the  corresponding  amount 
for  the  14  stores  located  in  cities  with 
population  of  40,000  and  over  was 
$1.64.  When  the  amounts  expended 
for  advertising  are  expressed  per 
$100  of  total  net  sales  per  stock  turn- 
over, they  constitute,  on  the  average, 
$0.78  for  the  stores  in  the  two  city- 
groups.  When  they  are  expressed  in 
terms  of  $100  of  sales  for  each  $1,000 
sold  per  full-time  sales-person,  as  in 
Table  266,  the  average  amount  for  the 
stores  in  the  large  cities  is  $0.09, 
and  for  those  in  the  small,  $0.08. 

For  the  stores  in  each  of  the  city- 
groups,  when  further  classified  by  the 

*  Population  figures  are  for  1920. 


367 


TABLE  265 


AMOUNT  OF  ADVERTISING  PER  $100  OF  TOTAL  NET  SALES  PER  STOCK  TURNOVER,  FOR 

STORES  WITH    SALES  OF   $40,000   TO   $80,000,    CLASSIFIED   BY    SIZE   OF    CITY 

AND   BY   AMOUNT    OF    SALES   PER   FULL-TIME    SALES-PERSON,    1919 


imnmt  of 
Soles  p«r 
Pull-tlE» 
tAloB-perflon 
(In  OOO'i) 

Vinbcr 
or 

stores 

Advertising  per  $100  of  Total  let  Sales 

Advortlalng  per  tloo  of  Total  let  Sales  pep 
Stock  Turnover 

site 

of 

Asount 

Per  Cent. 

Amount 

Fer  Cent. 

CltT 
(lo  OOO'i) 

(SrapMc 

D      20      40      eO      80    ICO    120    140    160    ISO 

Actual 

<^"P"'                        1     Actual 
1      20     40      60     60   100    120  140 

Iot»l 
(Average ) 

103 

tl.S7 

^^^^^^^^^ 

100.0 

$0.76 

1 

: 

DBdsr  «12 
tl2  to  )16 
«16   to  »24 
$24   to  t52 
tS2  k  OTcr 

16 
M 

51 
9 
IS 

1.42 

1.67 
1.12 
1.27 
1.18 

103.6 
121.9 

61.8 
»2.7 
86.1 

0.95 
0.98 
0.62 
0.60 
0.62 

i2s:o 

128.9 
61. e 
76.9 
81.6 

Itet»l 
(Average) 

1  ■' 

l" 

^^1^^,^^ 

1 

^^^^^^^^ 

1 

Total 
(ATerago ) 

89 

1.S2 

96.5 

0.78 

102.6 

Ondsr  tl£ 
|1£  to  tlS 
tie  to  t£4 
t£4  to  tSZ 
t52  »  <mr 

14 

£9 
£9 
6 
U 

1.4S 

1.70 
1.01 
1.00 
1.2J 

los.e 

124.1 
73.7 
73.0 

es.e 

0.S7 
l.OO 
e.S9 

o.se 

127.9 

40 

1 

77.8 
7S.T 

0.62 

^^^^^^^m 

1 

1 

Itttal 
(ATorago) 

14 

1.64 

119.7 

0.78 

• 

1 

tkidor  tl2 
tl2  to  tl6 
tie  to  $24 
$24  to  t52 
$S2  4  over 

2 

S 
2 
S 
2 

1.26 
1.56 
2.36 
1.77 
0.B9 

92.0 

ii:.9 

173.7 
129.2 
65.0 

0.79 
0.76 
0.72 
0.71 
0.66 

«0  ana 

^^"^^^     1 

, 

102.6 

^^^^^mm^m 

1 

■ 

75.7 

Average  (1.57 

Averse  tO«76 

amounts  sold  per  full-time  sales- 
person, there  is  no  unmistakable  ten- 
dency for  advertising  expenditures  to 
increase  or  to  decrease  as  the  sales 
per  full-time  sales-person  increase. 
This  generalization  applies  to  the 
amounts  expressed  in  terms  of  sales 
and  in  terras  of  sales  per  stock  turn- 
over. When  they  are  expressed  in 
terms  of  sales  for  the  amount  sold 
per  full-time  sales-person,  however, 
they  decrease  for  the  stores  in  the 
two  city-groups,  as  shown  in  the 
right-hand  column  of  Table  266.  The 
actual  amounts  of  expenditure,  as 
shown  in  Tables  265  and  266,  consti- 


tute the  standards  or  norms  which  are 
discovered  for  this  group  of  stores  for 
a  single  year. 

In  Tables  267  and  268,  the  amounts 
of  advertising  expenditure  are  shown 
for  a  group  of  103  stores  classified  by 
location  and  sales  per  full-time  sales- 
person. The  method  of  expressing 
them  is,  first,  in  terms  of  selling  ex- 
pense alone;  second,  in  terms  of  sell- 
ing expense  per  stock  turnover;  and, 
third,  in  terms  of  selling  expense  per 
$1,000  sold  for  a  full-time  sales- 
person. As  sliown  in  Table  267,  ad- 
vertising constitutes  $18.05  out  of 
every  $100  of  selling  expense  for  the 


368 


stores  located  in  the  small  cities.  For 
those  located  in  the  large  cities,  the 
corresponding  amount  is  $19.42. 
"When  these  expenses  are  reduced  to 
a  per  stock  turnover  basis,  the  aver- 
age amount  for  the  stores  in  the  small 
is  $10.62  and  for  those  in  the  large 
cities,  $9.25.  That  is,  in  terms  of 
selling  expense  alone,  the  average 
amount  is  higher  in  the  large  cities, 
and  in  terms  of  selling  expense  per 
stock  turnover,  lower  in  the  large 
than  in  the  small  cities.  A  more 
satisfactory  basis  for  comparing  these 


amounts  would  be  to  select  stores 
with  the  same  sales  per  full-time 
sales-person,  but  with  different  loca- 
tion. The  data,  however,  for  stores 
in  the  large  cities  are  insufficient  to 
admit  of  such  a  comparison. 

When  the  advertising  expenditures 
are  shown  per  $100  of  selling  expense 
per  $1,000  sold  per  full-time  sales- 
person, as  in  Table  268,  the  average 
amount  for  the  stores  in  the  small 
cities  is  the  same  as  that  for  those  in 
the  large  cities.  For  stores  of  differ- 
ent   location,    but    with    the    same 


TABLE  266 

AMOUNT  OF   ADVERTISING  PER  $100  OF  TOTAL  NET   SALES  PER   $1,000  OF   SALES  PER 

FULL-TIME    SALES-PERSON,    FOR    STORES    WITH    SALES    OF    $40,000    TO 

$80,000,  CLASSIFIED  BY  SIZE  OF  CITY  AND  BY  AMOUNT  OF 

SALES  PER  FULL-TIME  SALES-PERSON,  1919 


Anmir.t  of 
Sales  per 
Poll-time 
Baleo-pereon 
(In  OOO's) 

limber 

of 
Stores 

AdvortlBlng  per  $100  of  Totol  Sot 

Sales 

Advertising  per 
$1,000  of  Sales 

^100  of  total  let  Sales  per 
per  Pull-tlmo  Sales-person 

of 

city 

(In  000' o) 

Aooust 

Per  Cent. 

Per  (^nt. 

OrachK- 
r    20    40    6<p    ep  lop  120  14 

Actual 
3 

3     20     40     60 

°"'^^'                                 ]    Actual 
60   100   120   140   160   ISO 

Total 
(Average) 

103 

$l.»7 

' 

100.0 

$0.03 

100.0 

: 

Under  tl2 
$1£   to  $16 
516  to  $24 
t24  to  in 
(32  i  over 

16 
34 

31 

9 
IS 

1.4« 

1.67 
1.12 
1.27 
1.16 

103.6 
121.9 
81.6 
92.7 
86.1 

0.14 

0.12 
0.06 
0.05 
0.03 

175.0 
150.0 
76.0 
62.S 
ST.S 

Totel 

1 

(ATorage) 

1 

— 

1 

Total 
(Average) 

69 

1.32 

96.3 

O.OS 

100.0 

1 

^^ 

Ondor  tl2 
$12  to  $16 
$16  to  $24 
$24  to  $12 
$32  t  over 

14 
29 
29 
6 
11 

1.46 
1.70 
1.01 
1.00 
1.23 

105.6 
124.1 
73.7 
73.0 
89.8 

0.14 
0.12 
0.05 
0.04 
O.OS 

175.0 
ISO.O 
62.6 
50.0 
ST.S 

', 

' 

40 

1 

^^^^ 

■■^ 

1 
1 

1 

Total 
(Average ) 

14 

1.64 

U9.7 

0.09 

U2.5 

1 

' 

Dader  $12 
$12  to  $16 
$16   to   $24 
$84    to   $32 
$32  k  over 

2 

6 
2 
3 
2 

1.^6 
1.56 
2.38 
1.77 
0.89 

92.0 
113.9 
173.7* 
129.2 

65.0 

O.IS 
0.11 
O.U 
0.07 

cr.o2 

162.B 
137.5 
137.5 
87.5 
25.0 

1 

I^H 

A7orage  |0.08 


Pull  leoGtb  Dot  ahosD 


369 


TABLE  267 


AMOUNT  OF  ADVERTISING  PER  $100  OF  SEULING  EXPENSE  PER  STOCK  TURNOVER,  FOB 

STORES   WITH   SALES   OF   $40,000    TO   $80,000,    CLASSIFIED   BY   SIZE   OF    CITY 

AND    BY    AMOUNT   OF   SALES   PER   FULL-TIME    SALES-PERSON,    1919 


Aaount  ot 
Sftl««  par 

S*le8-p«rsoQ 
(in  OOO'lI 

Viabor 

of 
Stor«> 

AdTcrtlatsg  per  $100  of  SelUng  Siq>imM 

AdTertlalns  per  $100  of  Selling  BxpeDS» 
per  Stock  Tumovor 

81  u 

of 
City 

Aaount 

Per  Cent. 

Aaount 

For  Cant. 

Graplile 
1     20     40     60     80  ICp   120   1^0   160   160 

Actoaa 

araphio                   1    Actual 

3     20      40      60      80   I90   120   140 

Tot»l 

103 

$1S.28 

1 

■100.0 

$10.16 

100.0 

OaivT  tl2 
tl2  to  $16 
tie  ta  $24 
♦24  to  »i2 
$32  h  over 

16 
M 

31 
9 
15 

IS  .76 
19.43 
17.00 
17.75 
23.41 

86.2 
106.3 
93.0 
97.1 
123.1 

lO.Sl 
11.43 
9.44 
e.4S 
12.52 

1 

103.4 
112.5 
92.9 
83.2 
121.3 

7 

U*aFae«) 

' 

Total 
(Avorage) 

e» 

IS.OS 

98.7 

10.62 

104.5 

Osdar  $12 
$12  to  $16 
$16  to  $24 
$24  to  $32 
$52  i  over 

14 

29 

29 

e 
u 

18.37 
20.01 
15.44 
15.48 
25.24 

84.1 
109.S 
84.S 

84.7 
138.1 

10.25 
11.77 
9.08 
8.60 
12.62 

100.9 
115.8 
89.4 
84.6 
l£4.e 

40 

Total 
(Average ) 

14    ' 

19.42 

106.2 

9.25 

91.0 

; 

Osder  $12 
$12  t«  $18 
$16  to  $24 
$24  to  $32 
$S2  «c  OTor 

2 
S 
2 
3 
2 

20.16 
16.66 
32.72 
17.68 
14.30 

U0.3 

91.1 
178.0 
96.7 
78.2 

12.60 
8.33 
9.92 
7.07 
8.94 

124.0 
82.9 
97.9 
69.6 
88.0 

40  and 

.  ^ 

OT«r 

' 

ATarB^  ilS«Sft 


ATerago  |10*16 


amounts  sold  per  full-time  sales- 
person, the  average  expenditures  are 
different.  In  most  eases  the  number 
of  stores  is  inadequate  to  serve  as  a 
basis  for  comparison.  For  stores 
within  both  city-groups,  however,  the 
advertising  expenditures,  measured 
in  this  form,  decrease  as  the  sales  per 
full-time  sales-person  increase. 

D. — Summary. 

(1).  The  amounts  of  advertising 
expenditure  per  $100  of  total 
net  sales  per  $1,000  of  sales 
for  a  full-time  sales-person 
decreased  between  1914  and 
1918,    and    1918    and    1919. 


This  holds  for  all  stores  and 
for  stores  of  a  given  size. 

(2).  The  amounts  of  advertising 
per  $100  of  selling  expense 
per  $1,000  sold  for  a  full- 
time  sales-person  decreased 
between  1914  and  1918,  and 
1918  and  1919,  for  all  stores 
and  for  stores  of  a  given  size. 

(3).  For  stores  of  a  given  size,  the 
expenditures  for  advertising, 
measured  in  terms  of  sales 
alone,  tend  to  increase  as  the 
sales  per  full-time  sales-per- 
son increase.  When  measured 
in  terms  of  sales  per  stock 


370 


TABLE  268 


AMOUNT  OF  ADVERTISING  PER  $100  OF   SELLING  EXPENSE  PER  $1,000   OF   SALES  PER 

FULL-TIME     SALES-PERSON,     FOR     STORES     WITH     SALES     OF     $40,000     TO 

$80,000,     CLASSIFIED     BY     SIZE     OF     CITY     AND     BY     AMOUNT 

OF    SALES    PER    FULL-TIME    SALES-PERSON,     1919 


Amount  of 
Salos  por 

PUll-tlM 

Seltta-paraon 

(m  ooo'«) 

Number 

of 
Storoa 

Adrartlalng  par  ♦lOO  of  Sailing  Sxpenia 

AdTortlaln^  per 
♦1,000  of  Salaa 

♦loo  of  Salllag  Bzpanaa  per 
par  Pull-tljw  Salaa-peraon 

of 

city 

(In  000'«) 

AiBount 

?«>  Cant. 

Aoount 

far  Cent. 

)     20     40     60     Sp  100  1^  140  160  ISO 

Actual 

)     20     40 

1  ActnaJL 

60     80   100   120   140   160 

Tot»l 
(Av«r«go ) 

103 

♦la. 28 

^J 

100.0 

♦l.lO 

■'■    '-1— 

100.0 

1 

( 

Dndar  ll£ 
tl2  to  tie 
tlS  to  t24 
t24   to  tS2 
♦32  i  o.,r 

16 
Si 

31 
9 
13 

13.78 
19.43 
17.00 
17.73 
23.41 

86.2 

lee.s 

«3.0 

97.1 

128.1 

1.57 
1.34 

0.90 

0.66 
0.56 

142.7 
121.8 
81.8 
60,0 
80.0 

Tot«l 

' 

(ATer«g«) 

^^^^^^^m ' 

^^^^^  1 

• 

1 

1 

Total 
(ATOragt) 

89 

18.0S 

98.7 

l.U 

lOO.O 

I 

ttadar  tl2 
tl2  to  tie 
tl6  t«  tZ* 
ti*  to  $32 
♦32  k  OT«r 

14 
29 
S9 
6 

15.37 
2*. 01 
15.44 
15.48 
25.24 

84.1 
109.9 
84.8 
84.T 

ise.i 

l.SS 
1.S9 
0.88 
0.S7 
0.60 

138.2 
126.4 
74. S 
E1.8 
54.8 

tlni«p 

^I^MHB 

40 

^^^^ 

• 

r 

1 
• 

Total 
t Avarage ) 

14 

19.42 

106.2 

1.10 

100.0 

1 

1 

Dndar  tVl 
♦12  to  ♦is 
♦16  to  ^24 
♦24   to  ^32 
♦32  h  oTar 

2 
t 
2 
3 
g 

ao.ie 
ie.6s 

32.72 
17.S8 
14.30 

91.1 
179.0 
96.7 
78.2 

2.12 
l.U 
1.S6 
0.67 
0.S2 

102.7 
141.8 
•0.9 
29.1 

40  >nd 

^^""^^""^ 

over 

^^^^^^  , 

^^^^■""^^ 

' 

, 

^^_ 

Avor«8»  ^13.28 


Averftg*  ll.lO 

*7ull  langtb  not  Aawm 


turnover,  and  in  terms  of 
sales  for  the  amount  sold  per 
full-time  sales-person,  they 
decrease  as  the  sales  per  full- 
time  sales-person  increase, 

(4).  The  proportions  of  selling 
expense  attributable  to  adver- 
tising increase  as  the  amounts 
sold  per  full-time  sales-person 
increase  for  all  stores  and  for 
stores  with  sales  under  $80,- 
000.  The  direction  of  change 
is  not  uniform  for  stores  with 
sales  of  $80,000  and  over. 


(5).  The  amounts  of  advertising 
expenditures,  expressed  in 
terms  of  selling  expense  and 
stock  turnover,  are  irregular 
for  stores  with  different 
amounts  sold  per  full-time 
sales-person.  In  terms  of  sell- 
ing expense  and  the  amount 
sold  per  full-time  sales-person, 
however,  they  decrease  as  the 
sales  per  full-time  sales-per- 
son increase. 

(6).  For  stores  of  a  given  size,  the 
average  amount  of  advertis- 


371 


ing  expenditures  per  $100  of 
total  net  sales  for  a  $1,000 
sold  for  a  full-time  sales-per- 
son is  higher  in  the  large  than 
in  the  small  cities. 

(7).  For  stores  of  a  given  size,  the 
average  amount  of  advertis- 
ing expenditure  per  $100  of 
selling  expense  for  a  $1,000 
sold  per  full-time  sales-person 
is  the  same  in  both  small  and 
large  cities. 

4. — YEARLY  AMOUNTS  OP  EXPENDITURE 
FOR  ADVERTISING  IN  RELATION  TO 
EXPENDITURES  FOR  RENT  AND  IN- 
VESTMENTS IN  FIXTURES,  FOR 
STORES  CLASSIFIED  BY  YEARS,  BY 
SIZE,  AND  BY  LOCATION. 

The  discussion  of  the  amounts  ex- 
pended for  advertising,  considered  in 
this  section,  is  based  upon  stores  clas- 
sified according  to  the  amount  of  rent 
paid  per  100  square  feet  of  floor  space 
and  to  the  amounts  invested  in  fix- 
tures per  $100  of  total  net  sales.  In 
outline,  it  follows  closely  a  similar 
discussion  of  the  amounts  of  wages 
and  salaries  paid,  although  in  some 
respects  it  is  less  inclusive. 

(1) — YEARLY  AMOUNTS  OF  EXPENDI- 
TURE FOR  ADVERTISING  IN  RELA- 
TION TO  EXPENDITURES  FOR  RENT 
PER  100  SQUARE  FEET  OF  FLOOR 
SPACE,  FOR  STORES  CLASSIFIED  BY 
SIZE  OF  CITY  IN  WHICH  LOCATED.* 

For  the  purpose  of  analyzing  the 
expenditures  for  advertising  per  $100 
of  total  net   sales  and   per  $100  of 

•  Population  figures  are  for  1920. 


selling  expense  for  stores  paying  dif- 
ferent amounts  of  rent  per  100  square 
feet  of  floor  space,  a  group  of  stores 
having  annual  sales  between  $40,000 
and  $80,000  in  1919  is  selected.  The 
stores  are  classified  in  Table  269  by 
the  size  of  the  city  in  which  located 
and,  further,  by  their  rent  expendi- 
tures, measured  in  units  of  floor  space. 
A  brief  consideration  of  this  table  is 
of  interest. 

For  the  87  stores  located  in  the 
small  cities,  as  shown  in  Table  269, 
the  average  expenditure  for  adver- 
tising per  $100  of  total  net  sales  is 
$1.34;  per  $100  of  total  net  sales  per 
stock  turnover  it  is  $0.79;  per  $100 
of  total  net  sales  per  $1,000  sold  per 
full-time  sales-person,  $0.08;  and  per 
$100  of  total  net  sales  for  the  amount 
sold  per  square  foot  of  floor  space, 
$0.08.  These  are  the  same  units 
which  are  used  in  the  discussion  of 
the  amounts  of  wages  and  salaries 
paid  for  stores  classified  in  the  same 
manner.  For  this  group  of  stores,  the 
advertising  expenditures  per  $100  of 
total  net  sales  increase  as  the  amounts 
paid  in  rent  per  100  square  feet  of 
floor  space  increase,  the  minimum 
amount  being  $0.88  and  the  maximum 
$1.67.  When  the  expenditures  are 
measured  in  terms  of  net  sales  per 
stock  turnover,  they  likewise  increase 
with  the  increase  in  rent  paid  per 
unit  of  floor  space.  A  similar  condi- 
tion obtains  when  the  amounts  are 
expressed  per  $1,000  sold  per  full- 
time  sales-person.  On  the  other  hand, 
when  they  are  expressed  per  $100  of 
total  net  sales  for  the  amount  sold  per 
square  foot  of  floor  space,  they  de- 


372 


crease  with  increasing  rent  payments 
per  100  square  feet  of  floor  space. 
This  follows  because  of  the  dimin- 
ished floor  space  which  is  used  under 
conditions  of  high  rental.* 

The  amounts  of  advertising  expen- 
diture per  $100  of  selling  expense  are 
also  shown  in  Table  269,  the  same 
units  which  were  used  when  relating 
them  to  sales  being  employed.  The 
table  shows  the  amounts  for  stores 
having  different  rent  expenditures 
per  100  square  feet  of  floor  space,  and 
it  is  unnecessary  to  review  them  in 
detail.  The  general  directions  of 
change  agree  with  those  found  when 
the  amounts  are  expressed  in  terms 
of  sales. 

One  feature  of  Table  269,  however, 
requires    brief     consideration.      The 

*  See  Table  75  and  the  accompanying 
discussion. 


lower  part  of  the  table  shows  the 
average  amounts  of  expenditure  for 
advertising  in  terms  of  sales  and  of 
selling  expense,  for  10  stores  having 
sales  of  $40,000  to  $80,000,  but  located 
in  cities  with  population  of  40,000 
and  over.  By  consulting  the  table, 
comparisons  maj^  be  made  of  adver- 
tising expenditures  for  stores  with 
similar  rentals  and  sales,  but  with 
different  location.  Without  reviewing 
them  in  detail,  it  is  of  interest  to 
observe  that  the  average  amounts  per 
$100  of  total  net  sales  and  per  $100 
of  selling  expense  are  greater  for  the 
stores  in  the  large,  than  for  those  in 
the  small  cities.  This  table  should  be 
studied  in  conjunction  with  the  cor- 
responding tables  which  relate  to  the 
amounts  spent  for  wages  and  salaries 
and  total  selling  expense  for  stores 
similarly  classified. 


TABLE  269 

RELATION  OF  ADVERTISING  TO  TOTAL  NET  SALES  AND  SELLING  EXPENSE,  FOR  STORES 

HAVING   SALES  BETWEEN   $40,000   AND   $80,000,   CLASSIFIED   BY   SIZE   OF    CITY 

AND  BY  AMOUNT  OF  RENT  PER  100  SQUARE  FEET  OF  FLOOR  SPACE,  1919 


size 

of 

Cltj 

(to  OOO'a) 

iBormt  of 

Rout  per  100 

»q.  ft.   of 

Floor  Space 

of 
Stores 

AdTartleloe  per  $100  of  Total  Hat  Sales 

AdTartlsloe  par  $100  of  BarUng  Sxjmbbu 

Salek 
Alone 

Per 

Stock 
Turnover 

Per  $1,000  of 
Sales  per 
Poll- 1  lice 

Sales-porsoa 

Per  Sales 
per  aq.  ft. 

cf 
Floor  Space 

Selling 
Expense 
Alone 

Per 
Stock 

Turnover 

Per  $1,000  of 
Sales  par 
FaU-tlao 
Sales-person 

Par  Salaa 
per  sq.  ft. 

of 
Floor  Spec* 

ATerage 

67 

$1.54 

$0.79 

$0.08 

$0.06 

$18.13 

$10.66 

$1.10 

$1.04 

VBOar 
40 

(tadar  $20 
(30  to  $40 
$40  to  $60 
$60  ft  ovar 

U 
4S 

17 
14 

0.88 

i.es 

1.67 
1.S4 

0.44 

0.79 
0.93 
0.96 

0.05 
0.08 
O.U 
0.10 

0.09 
0.07 
0.08 
0.06 

13.44 

18.27 
10.91 

18.88 

6.72 
U.42 
U.06 
11.80 

0.71 
1.09 
1.31 
1.24 

1.36 

1.09 
0.90 
O.70 

40  czid 
OTar 

$60  ft  orep 

10 

1.87 

o.ei 

0.11 

0.06 

20.54 

6.04 

1.16 

o.ee 

373 


A- — Sujnmary. 

(1),  For  stores  of  a  given  size,  the 
amounts  of  advertising  ex- 
penditure per  $100  of  total 
net  sales  increase  as  the 
amounts  of  rent  paid  per  100 
square  feet  of  floor  space  in- 
crease. 

(2).  For  stores  of  a  given  size,  the 
proportions  of  selling  expense 
attributable  to  advertising  in- 
crease as  the  rental  payments 
per  100  square  feet  of  floor 
space  increase. 

(2) — YEARLY     AMOUNTS     OF    EXPENDI- 
TURE   FOR    ADVERTISING   IN    RELA- 
TION    TO    INVESTMENTS   IN     FIX- 
TURES   PER    $100    OF    TOTAL    NET 
SALES. 

For  the  analysis  of  advertising  ex- 
penditures per  $100  of  total  net  sales 
and  per  $100  of  selling  expense  for 
stores  classified  by  the  amounts  in- 
vested in  fixtures  per  $100  of  total  net 
sales,  the  records  of  135  stores  are 
available.  The  purpose  of  this  analy- 
sis is  to  determine  the  relation,  if  any, 
which  exists  between  the  amounts 
expended  for  advertising  in  relation 
to  sales  and  the  amounts  of  the  fixture 
investments,  similarly  expressed. 

A. — Yearly  Amounts  of  Expenditure 
for  Advertising  per  $100  of  Total 
Net  Sales  and,  per  $100  of  Selling 
Expense,  1919,  1918,  and  1914. 

Table  270  shows  the  average 
amounts  of  expenditure  for  adver- 
tising per  $100  of  total  net  sales  for 
135  stores,  classified  by  the  amounts 
invested  in  fixtures  per  $100  of  total 


net  sales.  Without  reviewing  the 
average  expenditures  for  each  of  the 
years  for  the  135  stores,  as  a  whole, 
attention  is  directed  primarily  to  the 
amounts  in  each  year  for  stores  hav- 
ing different  fixture  investments  per 
$100  of  total  net  sales.  For  the  com- 
bined years,  the  average  advertising 
expenditure  per  $100  of  total  net 
sales,  for  the  stores  which  had  fixture 
investments  of  less  than  $2  per  $100 
of  sales,  is  $1.84.  From  this  average 
as  a  minimum,  the  amounts  increase 
to  $2.71  for  the  stores  which  had  $6 
or  more  invested  in  fixtures  for  each 
$100  of  sales.  For  each  year,  with 
two  unimportant  exceptions,  the  ex- 
penses for  this  purpose  increase,  as 
the  amounts  invested  in  fixtures  per 
$100  of  total  net  sales  increase.  That 
is,  a  direct  relationship  between  ad- 
vertising expenditures  and  invest- 
ment in  fixtures  is  found.  This  is  to 
be  expected  in  view  of  the  fact  that 
an  important  service  rendered  by 
fixtures  is  the  display  of  goods.  In 
the  nature  of  the  case,  such  a  display 
involves  some  expenditure  for  adver- 
tising. 

In  Table  271  the  average  fixture 
investments  per  $100  of  total  net  sales 
are  shown  for  stores  classified  by 
years  and  further  by  the  amounts  of 
advertising  expenditure  per  $100  of 
total  net  sales.  The  purpose  of  this 
table  is  to  show  the  direct  relationship 
which  obtains  between  fixture  invest- 
ments and  the  amounts  expended  for 
advertising.  With  a  single  exception, 
amounts  of  fixture  account  vary  di- 
rectly with  the  amounts  expended  for 
advertising  in  relation  to  sales. 


374 


TABLE  270 

TOTAL  NET   SALES,   ADVERTISING,   AND  AMOUNT  OF   ADVERTISING  PER  $100   OF  TOTAL 

NET  SALES,  FOR  135  IDENTICAL  STORES  CLASSIFIED  BY  AMOUNT  OF  FIXTURE 

ACCOUNT  PER  $100  OF  TOTAL  NET  SALES,   1919,   1918,  AND   1914 


Amount  of 
Pljcture  Account 

per  $100  of 
Total  Net  Sales 

Number 

of 
Store- 
years 

Total 
Net  Sales 

Total 
Advertising 

Advertising  per  SlOO  of  Total  Net  Sales 

Xo«ra 

Amount 

Per  Cent. 

GrAphlc           Actual 
)   20   40   60   80  100  120  140 

Total 
(Average) 

405 

$40,576,908 

1923,442 

|2.28 

'    '    '    '    1  -'■— 

100.0 

1 

1 

Under  |2 
$2  to  (4 
i4   to  |6 

}6  &  over 

72 

131 
86 
116 

8,020,930 
10,428,302 

7,841,253 
14,286,445 

147, 545 
206,442 
182,392 
587,263 

1.84 
1.98 
2.33 
2.71 

80.7 
86.8 
102.2 
118.9 

Total 

1 

(Average) 

• 

1 

1 
1 

Totea 
(Average) 

136 

18,919,233 

412,745 

2.18 

95.6 

1 

Under  $2 
$2  to  ^ 
fl  to  $6 

♦e  &  over 

58 
51 
23 
23 

5,228,703 
4,897,266 
3,173,841 
5,619,423 

100,793 
93, 916 
67,564 

150,472 

1.95 
1.92 
2.15 
2.68 

84.6 
84.2 

93.4 
117.5 

1919 

1 

1 

1 

Total 
(Avorage) 

155 

13,360,145 

293,780 

2.20 

96.5 

1 

1 

1918 

Under  (2 
$2  to  $4 
|4  to  $6 

$6  &  over 

20 
45 
34 

56 

2,163,476 

5,706,664 
2,807,944 
4,682,071 

55,524 
75,135 
64,292 
120,829 

1.55 
2.05 
2.29 
2.58 

68.0 

89.0 

100.4 

113.2 

1 

^ 

Total 
(Average) 

135 

8,297,530 

216,917 

2.61 

114.5 

Under  $2 
$2  to  $4 
$4  to  $6 
$6  &  over 

14 
35 
29 
57 

628,751 
1,824,582 
1,859,448 
3,984,949 

13,028 

37,391 

50,536 

115,962 

2.07 
2.05 
2.72 
2.91 

90.8 
89.9 
119.5 

1914 

1 

! 

Average  |2.28 


In  Table  272,  the  amounts  of  ex- 
penditure for  advertising  are  shown 
as  proportionate  parts  of  selling  ex- 
pense. The  bases  of  classification  of 
the  stores  are  years  and  amounts  in- 
vested in  fixtures  in  relation  to  sales. 
For  the  combined  years,  the  stores 
which  had  less  than  $2  invested  in 


fixtures  for  each  $100  of  sales,  spent 
$17.69  in  advertising  for  each  $100 
of  selling  expense,  while  those  which 
had  $6  and  over  invested  in  fixtures, 
similarly  measured,  expended  $21.38. 
Over  the  entire  range  of  stores,  when 
classified  by  fixture  investments,  ad- 
vertising expenditures  become  a  pro- 


375 


portionately  larger  part  of  selling 
expense.  This  holds  not  only  for  the 
combined,  but  also  for  the  individual 
years.  There  are  certain  exceptions 
to  this  rule  and  these  the  reader  may 
observe  for  himself  by  consulting  the 
table. 

It  is  unnecessary  to  review  for  each 
of  the  years  the  amounts  of  advertis- 
ing expenditure  per  $100  of  selling 


expense  for  stores  treated  without 
relation  to  fixture  investment.  This 
has  been  done  in  various  places  in  the 
preceding  discussion.  While  the 
amounts  in  this  case  slightly  differ 
from  those  for  other  groups  of  stores, 
the  variations  on  the  whole  are  of  the 
same  general  nature  and  the  amounts 
not  widely  different. 


TABLE  271 

TOTAL  NET  SALES,  FIXTURE  ACCOUNT,  AND  AMOUNT  OF  FIXTURE  ACCOUNT  PER  $100 

OF    TOTAL    NET    SALES,    FOR    135    IDENTICAL    STORES    CLASSIFIED    BY 

AMOUNT     OF     ADVERTISING     PER     $100      OF      TOTAL 

NET    SALES,    1919,    1918,    AND    1914 


Aaovmt  of 

Advertising 

per  OlOO  of 

Total 

Bet  Salea 

number 

of 
Store- 
years 

Total 
Net  Sales 

Anount  of 
Fixture 
Account 

Fixture  Account  per  $100  of  Total  Bet  Salea 

TSCM 

Amount 

Per  Cent. 

Q-"apW.e                1  Actual 
3   20   40   60   BO  100  120  140  160  180  200 

Total 
(Average) 

40S 

$40,576,908 

$1,908,079 

$4.70 

^^^^^^: 

100.0 

Dader  %1 
♦l  to  42 
$2  to  (3 
tS  4  over 

99 
123 
109 

69 

6,041,768 

9,375,659 

14,595,172 

10,564,309 

217,855 
354,297 
674,077 
661,850 

3.61 
3.78 
4.62 
6.26 

76.8 
80.4 
98.3 
133.2 

Total 

(Average ) 

Total 
(Average) 

155 

18,919,233 

738,774 

3.90 

83.0 

1919 

Dnder  |l 
♦l  to  t2 
»2  to  »J 
^  4  over 

39 
39 
42 
15 

3,049,266 
3,903,793 
8,280,017 
5,686,157 

93,17J 
128,510 
339,711 
177,582 

S.C6 
3.29 

4.10 
4.81 

65.1 

70.0 

87.2 

.  U)£.3 

Total 
(Average) 

135 

13,360,145 

620,889 

4.65 

98.9 

Under  |1 
♦  l  to  »2 
t2  to  |3 
*3  4  over 

36 
44 
35 
£0 

2,112,506 
3,258,720 
4,278,153 
3,710,768 

87,312 
119,980 
204,313 
£09,284 

4.13 
3.68 
4.78 
5.64 

87.9 
78.3 
101.7 
120.0 

Total 
(Average) 

135 

8,297,530 

548,416 

6.61 

140.6 

Onder  tl 
|1  to  tZ 
%2   to  tS 
|3  4  over 

24 
45 
32 
34 

879,996 
2,213,146 
2,037,002 
5,167,386 

S7,372 
105,807 
130,053 
275.184 

4.25 
4.78 
6.38 
8.69 

90.4 
101.7 
135.7 
184.9 

1914 

; 

Average  $4.70 


376 


TABLE  272 

TOTAL    SELLING    EXPENSE,    TOTAL    ADVERTISING,    AND    AMOUNT    OF    ADVERTISING    PEB 

$100  OF  SELLING  EXPENSE,  FOR  135  IDENTICAL  STORES  CLASSIFIED  BY 

AMOUNT  OF  FIXTURE  ACCOUNT  PER  $100   OF  TOTAL  NET 

SALES,     1919,     1918,     AND     1914 


Amount  of 
Fixture -Account 

per  tlOO  of 
Total  Uet  Balea 

number 

of 
Store- 
years 

Total 
Selling 
Expense 

Total 
Advertising 

Advertising  per  $100  of  Sailing  bpense 

Tears 

Amonnt 

< 

Per  Cent. 

Craphlo          Aotnsl 
20  40   60   89  lOp  12p 

Total 
(Average) 

405 

$4,428,098 

$923,442 

120^5 

100.0 

1 

1 

Under  $2 
»2  to  U 
a   to  «6 
i6  &  over 

72 
131 

86 
116 

852,922 

985,648 

798,319 

1,811,209 

147,345 
206,442 
182,392 
587,263 

17.69 
20.94 
22.85 
21.38 

84.8 

100.4 
109.6 
102.5 

Total 
(ATerage) 

Tbtal 
(Average) 

155 

1,992,310 

412,745 

20.72 

99.4 

Under  J2 
|2  to  U 
U   to  $6 

^6  k   oTsr 

38 
61 
23 
23 

556,252 
428,443 
326,474 
702, 161 

100,793 
93,916 
67,564 

150,472 

18.85 
21.92 
20.70 
21.45 

90.5 
108.1 

99.3 
102.8 

1919 

Total 
(Average) 

155 

1,473,360 

293,780 

19.94 

95.6 

Under  |2 
$2  to  $4 

p^  to  |6 

$6  !c  over 

20 
45 
34 

36 

244,748 
570,632 
267,521 
590,559 

33,524 

75,135 

64,292 

120,829 

iy.7o 

20.28 
24.03 
20.46 

65.7 

97.3 

115.5 

98.1 

Total 
(Average ) 

155 

962,428 

216,917 

22.64 

108.1 

Older  (2 
|2  to  $4 
$4  to  $5 

t6  k   over 

14 
35 
29 
57 

52,942 

186,675 
204,324 
518,489 

13,028 

57,391 

50,536 

116,962 

24.61 
20.03 
24.73 
22.37 

118.0 

96.1 

118.6 

107.3 

1914 

Average  $20.85 


B. — Yearly  Amotmts  of  Expendi- 
ture for  Advertising  per  $100  of 
Total  Net  Sales  and  per  $100  of 
Selling  Expense,  for  Stores  Clas- 
sified hij  Size,  1919,  1918,  and 
1914. 

In  Tables  273  to  276,  inclusive,  the 


average  amounts  of  advertising  ex- 
penditure per  $100  of  total  net  sales 
are  computed  for  stores  classified  by 
years,  by  size,  and  by  the  amounts  in- 
vested in  fixtures  per  $100  of  total 
net  sales.  The  amounts  may  be 
studied  from  two  points  of  view: 
First,  from  year  to  year  for  stores 


377 


TABLE  273 

TOTAL  NET  SALES,  ADVERTISING,   AND  AMOUNT  OF  ADVERTISING  PER  $100   OF   TOTAL 

NET    SALES,   FOR    135   IDENTICAL    STORES    CLASSIFIED    BY    SIZE    AND    BY 

AMOUNT  OF  FIXTURE  ACCOUNT  PER  $100  OF  TOTAL  NET 

S.\LES,    1919,    1918,    AND    1914,    COMBINED 


Araotmt  of 
Fixture  Aooonnt 

per  §I00  of 
Total  Net  Sales 

number 

of 
Store- 
jears 

Total 
Bet  Sales 

Total 
Advertising 

Advertising  per  #100  of  Total  Het  Sales 

Claaairied 

Totftl 
Vet  Sales 
(In  OOO'b) 

Amoimt 

Per  Cent. 

°'''P^°                      1     Actual 
5     2p     4p     6p     ap  100   120   i4iO 

Total 
(Average) 

405 

#40,676,908 

#923,442 

#2.28 

100.0 

Under  #2 
♦2  to  |4 
U  to  «6 

#6  k  over 

72 
Ul 

86 
116 

8,020,930 

10,428,502 

7,841,235 

14,286,445 

147,545 

206,442 
182,392 
387,263 

1.84 
1.98 
2.33 
2.71 

80.7 
86.8 
102.2 
118.9 

Total 

(Average ) 

^^ 

I 

Total 
(Average ) 

112 

5,119,809 

54,547 

1.74 

76.5 

Under  |40 

Dnder  }2 
♦2  to  $4 
H  to  $6 
^6  *  over 

14 
28 
27 
43 

403,667 

800,159 

723,519 

1,192,274 

6,768 
12,713 
11,735 
24,111 

1.43 
1.59 
1.62 
2.02 

62.7 
69.7 
71.1 
88.6 

1 

Total 
(Average) 

153 

8,672,180 

145,442 

l.«8 

75.7 

— 

|4o  to  feo 

Dnder  |2 
♦2  to  »4 
#4  to  |6 
#6  It  over 

20 
65 
51 
59 

1,107,291 
3,755,697 
1,653.451 
2,155,841 

10,467 
61,733 
31,295 
41,947 

0.95 
1.64 
1.89 
1.95 

41.7 
71.9 

82.9 
85.5 

Total 
(Average ) 

98 

11,411,444 

253,444 

2.22 

97.4 

Under  |2 
#2  to  U 

|4  to  f e 

♦6  k  over 

27 
55 
19 
19 

5,021,911 
3,838,758 
2,592,924 
2,157,851 

56,997 
77,049 
61,961 
67,457 

1.89 
2.01 
2.59 
2.66 

82.9 

88.2 
113.6 
116.7 

#80   to  tlSO 

Total 
(Average) 

42 

17,575,475 

470,209 

2.71 

118.9 

Under  $2 
»2  to  |4 
U  to  $6 
$6  &  over 

11 
7 
9 

16 

5,487,871 
2,033,788 
5,071,559 
8,780,477 

74,093 

54,947 

77,401 

253r,76e 

93.0 
118. « 
110.5 
131.6 

llBO  k  over 

2.70 

Average  #2.28 


378 


TABLE  274 

TOTAL  NET  SALES,   ADVERTISING,  AND  AMOUNT  OF  ADVERTISING  PER  $100   OF   TOTAL 

NET    SALES,    FOR    135    STORES    CLASSIFIED    BY    SIZE    AND    BY    AMOUNT    OF 

FIXTURE    ACCOUNT    PER    $100    OF    TOTAL    NET    SALES,    1919 


Classified 

Amount  of 
Fixture  Account 

per  $100  or 
Total  Net  Sales 

Humber 

of 
Stores 

Total 
Het  Sales 

Total 
Advertising 

Advertising  per  $100  of  Total  Het  Sales 

Total 
Hst  Sales 
(m  000' e) 

Amount 

Per  Cent. 

^^''P^'^          Actual 
)  Zp     ip   6,0   8,0  100  1^0  1^0 

Total 
(Average ) 

155 

$18,919,235 

$412,745 

$2.18 

1 

100.0 

i 

Qnder  (2 
»2  to  U 
(4  to  $6 
(6  &  over 

S8 
51 
25 
23 

5,228,705 
4,897,266 
3,175,841 
5,619,425 

100,793 
93,916 
67,564 

150,472 

1.95 
1.92 
2.13 
2.68 

88.5 

Total 

(Average) 

97.7 
122.9 

^^^"^"" 

Total 
(Average ) 

12 

374,525 

5,686 

1.62 

69.7 

Under  $2 
(2  to  f4 
(4  to  |6 

(6  &  over 

2 
4 
5 
3 

62, 964 

129,541 

92,703 

89,117 

1,875 
986 
928 

1,897 

2.98 
0.76 
1.00 
2.15 

136.7 
34.9 
45.9 
97.7 

Ttoder  UO 

ZI. 

Total 
(Average) 

52 

2,967,756 

39,857 

1.34 

61.5 

|4o  to  teo 

Under  $2 
|2  to  $4 

»4  to  (6 
|6  &  over 

8 
28 

a 
e 

470, 684 

1,668,927 

431,726 

406,419 

5,202 

24,255 

6;  945 

6,455 

0.68 
1.46 
1.61 
1.34 

— 

51.2 
67.0 
75.9 
61.5 

Total 
(Average ) 

48 

5,603,210 

104,534 

1.87 

85.8 

Under  |2 
$2  to  $4 
(4  to  $6 

$6  8c  over 

20 

15 

7 

6 

2,217,649 

1,759,679 

836,118 

789,764 

38,350 

50,856 
17,015 
18,315 

1.75 
1.75 
2.03 
2.52 

79.4 

80.3 

93.1 

106.4 

(30  to  $180 

Total 
(Average ) 

26 

9,975,942 

262,668 

2.65 

120.6 

ttider  tz 
%Z   to  fr4 
#4  to  (6 

(6  Be  over 

8 
4 
5 
6 

2,477,406 
1,549,119 
1,815,294 
4,534,123 

57,566 

57,819 

42,676 

124,807 

2.32 
2.80 
?.35 
2.88 

106.4 
128.4 
107.8 
132.1 

♦l80  Jt  over 

, 

Average  |2.X8 


379 


of  a  given  size,  and  second,  from 
store-group  to  store-group  in  each  of 
the  years  for  stores  classified  by  size, 
with  variable  amounts  invested  in 
fixtures.  The  latter  comparison  is  of 
chief  interest.  Without  reviewing  in 
detail  the  averages  under  the  condi- 
tions established  in  the  tables,  it  is  of 
interest  to  observe  that  the  expendi- 
tures increase  with  the  amounts  in- 
vested in  fixtures  per  $100  of  total 
net  sales.  This  condition  obtains  for 
the  stores  treated  as  a  whole  and,  with 
minor  exceptions,  when  they  are  clas- 
sified by  size.  A  single  group  of 
stores — those  with  sales  of  $40,000  to 
$80,000 — for  the  combined  years,  may 
be  used  to  illustrate  this  tendency. 
The  average  for  this  group  of  stores 
is  $1.68.  For  those  which  had  invest- 
ments in  fixtures  of  less  than  $2  for 
each  $100  of  sales,  the  average 
amount  is  $0.95.  For  those  with  fix- 
ture investments  of  $2  to  $4,  similarly 
measured,  the  average  is  $1.64;  for 
those  with  fixture  investments  of  $4 
to  $6  it  is  $1.89;  and  for  those  with 
fixture  investments  of  $6  and  over,  it 
is  $1.95.  Similar  increases  hold  for 
each  of  the  other  groups  of  stores, 
although  the  actual  amounts,  tending 
as  they  do  to  increase  with  the  size  of 
the  stores,  are  different. 

In  Table  274,  the  expenditures  for 
advertising  per  $100  of  total  net  sales 
are  shown  for  the  135  stores  classified 
by  the  amount  of  their  fixture  invest- 
ment in  1919.  For  the  entire  group 
of  stores  the  average  for  this  year  is 
$2.18,  as  compared  to  $2.28  for  the 
combined  years.  For  the  group  of 
stores  with  sales  of  $40,000  to  $80,000, 


it  is  $1.34,  as  contrasted  with  $1.68 
for  the  combined  years.  In  this 
group,  however,  there  is  the  same 
tendency  for  the  expenditures  to  in- 
crease with  an  increase  in  fixture  in- 
vestments per  $100  of  total  net  sales. 

It  is  unnecessary  to  review  the  ac- 
tual amounts  of  advertising  expendi- 
ture for  stores  in  1918  and  1914.  They 
are  contained  in  Tables  275  and  276, 
respectively.  It  is,  however,  advisable 
again  to  call  to  the  reader's  atten- 
tion the  fact  that,  while  135  identical 
stores  are  studied  from  year  to  year, 
both  the  sales  and  the  investments  in 
fixtures  in  the  stores  varied  from  year 
to  year,  with  the  result  that  the  same 
stores  are  not  encountered  in  a  given 
sales  or  fixture  investment  group.  In 
spite  of  this  fact,  however,  there  is  an 
advantage  in  using  a  group  of  iden- 
tical stores  over  one  in  which  not  only 
sales  and  fixtures,  but  also  the  num- 
ber, vary. 

Because  of  the  direct  relationship 
which  obtains  between  fixture  invest- 
ments per  $100  of  total  net  sales  and 
advertising  expenditures,  similarly 
measured,  it  has  been  thought  of  in- 
terest to  include  Tables  277  to  280, 
inclusive,  which  show  for  the  135 
stores,  the  average  amounts  invested 
in  fixtures  per  $100  of  total  net  sales 
for  stores  having  different  classified 
amounts  of  expenditure  for  advertis- 
ing in  relation  to  sales.  The  stores  are 
classified  according  to  size. 

For  the  combined  years  for  all  the 
stores,  the  average  fixture  investment 
per  $100  of  total  net  sales  is  $4.70. 
For  the  stores  with  sales  of  less  than 
$40,000   it   is  $5.26,   and   from   this 


380 


TABLE  275 

TOTAL   NET   SALES,   ADVERTISING,   AND  AMOUNT  OF  ADVERTISING  PER   $100   OF   TOTAL 

NET    SALES,    FOR    135    STORES    CLASSIFIED    BY    SIZE    AND    BY    AMOUNT    OF 

FIXTURE    ACCOUNT    PER    $100    OF    TOTAL    NET    SALES,     1918 


Classified 

Total 
Set  Sales 

Amount  of 
Fixture  Account 

per  $100  of 
Total  Ket  Sales 

Number 

of 
Stores 

Total 
Net  Sales 

Total 
Advertising 

Advertising  per  $100  of  Total  Het  Sales 

Amount 

C 

Per  Cent. 

(In  OOO'a) 

Graphic        1  Actual 
>  20  40  60  80  100  120  140 

Total 
(Average) 

135 

$13,360,145 

$293,760 

$2.20 

100.0 

Total 

Under  |2 
»2  to  U 
$4  to  t6 
♦s  k  over 

20 
45 
34 

55 

2,163,476 
3,706,654 
2,807,944 
4,682,071 

33,524 

75,135 

64,292 

120,829 

1.55 
2.03 
2.29 
2.58 

1 

70.5 
92.3 
104.1 
117.3 

(Averago) 

^^^^"  1^ 

Total 
(Average ) 

37 

1,117,468 

17,642 

1.58 

71.8 

Vn&ar  $40 

Ubder  #2 
♦2  to  #4 
U   to  «6 

$6  It  over 

4 
S 
11 
14 

124,966 
269,792 
297,192 
425,518 

1,735 

4,076 
6,383 
6,448 

1.39 
1.51 
1.81 
1.52 

63.2 
68.6 
82.3 
69,1 



Total 
(Average ) 

56 

3,239,547 

51,826 

1.60 

72.7 

t40  to  |90 

Under  i2 
#2  to  %4 
U   to  *6 
$6  &  over 

a 

22 
IS 
U 

434,936 
1,335,132 

779,116 
690,363 

4,353 
22,641 

12,045 
12,787 

1.00 
1.70 
1.55 
1.85 

45.5 
77.3 
70.5 
84.1 

Total 
(Average ) 

28 

3,298,407 

75,369 

2.32 

105.5 

Under  $2 
»2  to  »4 
♦4  to  |6 

$6  8t  over 

5 

12 
6 
6 

593,109 

1,417,061 

654,591 

633,646 

10,709 
31,290 
16,639 
17,731 

1.81 
2.21 
2.54 

2.80 

82.3 
100.5 
115.5 
127.3 

|80  to  |180 

Total 
(Average ) 

14 

5,704,723 

147,943 

2.69 

117.7 

Under  i2 
»2  to  «4 

|4  to  te 

|6  k   over 

3 
3 
3 
5 

1,010,465 

684,669 

1,077,045 

2,932,544 

16,727 

17,128 

30,225 
63,863 

1.66 
2.50 
2.81 
2.86 

75.5 
113.6 
127.7 
130.0 

|180  &  over 

AverBge  $2.20 


381 


TABLE  276 

TOTAL  NET  S^VLES,   ADVERTISING,   AND  AMOUNT   OF   ADVERTISING  PER   $100   OP   TOTAL 

NET    SALES,    FOR    135    STORES    CLASSIFIED    BY    SIZE    AND    BY    AMOUNT    OF 

FIXTURE    ACCOUNT    PER    $100    OP    TOTAL    NET    SALES,     1914 


Clasgirisd 

Total 
Met  Sales 
(In  OC'O'e) 


Araount  of 
Fixture  Account 

per  $100  of 
Total  Net  Sales 


Total 
Net  Sales 


Total 
Advertising 


Advertising  per  $100  of  Total  Net  Sales 


Graphic 

p  2p  4p  6,0  ep  10,0  izp  140  iqo 


Total 
(Average ) 


Ihder  #40 


^  to  |80 


teo  to  tlSO 


^180  &  oTer 


Total 
(Average) 


$3,297,530 


$216,917 


Uoder  $2 
(2  to  U 
|4  to  $6 
#6  fc  over 


628,751 
1,324,582 
1,659,448 

5,984,949 


13,028 

57,391 

50, 556 

115,962 


Total 
(Average ) 


1,628,016 


51,019 


Under  |2 
$2  to  |4 
|4  to  |6 

$6  k   over 


216,927 

400,826 
535,624 
677,659 


2,178 

7,651 

5,424 

15,766 


Total 
(Average ) 


2,  464-,  877 


55,759 


nider  (2 
|2  to  >4 

#4   to  $6 

♦6  t  over 


201,671 

761,538 

442,609 

1,059,059 


2,912 
14,837 
12,505 
25,705 


Totia 
(Average ) 


2,509,827 


72,541 


Coder  #8 
Is  to  |4 

♦4  to  »6 

%6  &  over 


211,153 
663,018 
902,215 
751,441 


7,958 
14,905 
28,507 
21,393 


Total 
(Average ) 


59,598 


Under  $9 
|2  to  #4 
♦4  to  |6 

#6  II  over 


181,000 
1,513,810 


4,500 
55,098 


$2.61 


2.07 
2.05 
2.72 
2.91 


1.91 


1.01 
1.91 
1.65 
2.33 


2.18 


1.44 
1.95 
2.78 
2.24 


2.89 


5.76 
2.25 
S.14 
2.91 


2.49 
3.64 


Average  $2.61 


100.0 


79.3 
78.5 
104.2 
111.5 


7S.2 


38.7 
73.2 

62.5 
89.3 


83.5 


55.2 

74.7 

106.6 

85.8 


110.7 


144.1 
86.2 
120.3 
111.6 


95.4 
139.6 


382 


TABLE  277 

TOTAL  NET  SALES,  FIXTURE  ACCOUNT,  AND  AMOUNT  OF  FIXTURE  ACCOUNT  PER  $100 

OF  TOTAL  NET  SALES,  FOR  135  IDENTICAL   STORES  CLASSIFIED   BY   SIZE, 

AND  BY  AMOUNT  OF  ADVERTISING  PER  $100  OF  TOTAL  NET 

SALES,    1919,    1918,   AND    1914,    COMBINED 


Classified 

Tot;al 
:i9t   Sales 

Anoimt  of 

Advertising 

per  $100  of 

Total 

Net  Sales 

of 
Store- 
years 

Total 
Net  Sales 

Anoimt  of 
FLnt'jxa 
Acoouat 

Fixture  Aeoount  per  $100  of  Total  Det  Sales 

A,-noimt 

Par  Cent. 

Cln  OOO'a) 

°ra^^o                          1    Actual 
3     20     40     60     80  100  120  140  160 

Total 
(Average ) 

405 

$40,576,908 

$1,908,079 

$4.70 

100.0 

tJnder  $1 
$1  to  $2 
$2  to  $3 
iZ  k  over 

99 
128 
109 

69 

6,041,768 

9,375,659 

14,595,172 

10,564,309 

217,855 
354,297 
674,077 
661,350 

3.61 
3.73 
4.52 
6.26 

76.3 

Total 

(Average ) 

133.2 

Total 
(Average) 

112 

3,119,809 

164,125 

5.26 

1U.9 

Under  $1 
♦l  to  $2 
$2  to  $3 
$3  4  over 

31 
44 

20 
17 

919,298 

1,214,515 

546,408 

439,588 

43,996 
63,129 
54,  U9 
22,881 

4.79 
5.20 
6.24 
5.21 

101.9 

iia.a 

132.3 
110.9 

Under  $40 

^^*""" 

Total 
(Average ) 

153 

8,672,180 

377,800 

4.36 

82.8 

Under  $1 
$1  to  »2 
$2  to  $3 
$3  i  ove> 

SO 

50 
35 
18 

2,797,430 
2,771,467 
2,034,101 
1,069,132 

104,578 
122,201 
84,959 
66,062 

3.74 
4.41 
4.18 
6.19 

79.6 
93.3 
88.9 
131.5 

$40  to  ieo 

Total 
(Average ) 

98 

11,411.444 

431,319 

3.73 

80.4 

|80   to  $180 

Ondar  $1 
$1  to  $2 
$2  to  $3 
$3  &  over 

16 
27 
33 
22 

1,763,073 
3,166,728 
3,948,606 
2,533,037 

58,204 

94,473 

149,388 

129,254 

3.30 
2.98 
3.78 
5.10 

70.2 
63.4 
80.4 
103.5 

Total 
(Average) 

42 

17,373,475 

934,835 

5.33 

114.  S 



tlBO  fc  over 

Under  $1 
$1  to  $2 
$2  to  $3 
$3  i  over 

2 
7 
21 
12 

S«l,967 
2,222,949 
8,066,057 
6,522,502 

11,077 

74,494 

405,611 

443, 653 

1.97 
3.35 
6.03 
6.80 

41.9 
71.3 
107.0 
144.7 

' 

Average  $4.70 


383 


TABLE  278 

TOTAL  NET  SALES,  FIXTURE  ACCOUNT,  AND  AMOUNT  OF  FIXTURE  ACCOUNT  PER  $100 

OF  TOTAL  NET  SALES,  FOR  135  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT 

OF   ADVERTISING    PER   $100    OF    TOTAL    NET    SALES,    1919 


ciuiirisd 

Tot»l 
let  E«ls9 
(In  OOO's) 


Jkaormt  of 

AdTcrtlilsg 

per  »10<;  of 

Total 

Set  Salss 


Anount  of' 
Plituro 
Account 


Flxtul^  Account  per  tlOO  of  Total  Het  Sales 


Graphic  Actual 

0      20      40      60      80   100   120    140   160   180  200 


CmSer  $40 


$40  to  teo 


teo  to  (ISO 


tl80  4  OTer 


118,919,223 


$738,774 


Dndor  $1 
Jl  to  iz 
|2  to  $3 
$3  8:  over 


3,049,266 
3,905,793 
8,280,017 
3,636,157 


374,325 


93,171 
128,510 
539,711 
177,382 

16,697 


Under  $1 
$1  to  $2 
$2  to  |3 
$3  &  over 


159,936 
113,058 
28,261 
73,070 


e,645 
5,592 
2,050 
3,410 


tinder  |1 
tl  to  $2 
t2  to  tS 
$3  fc  over 


2,967,756 

1,225,703 
927,429 
653,559 
181,265 


107,859 

41,104 
31,  Ul 
S6,042 
9,582 


Total 
(Average] 


6,603,210 


175,562 


Under  Si 

$1  to  iz 

>2  to  t3 
$5  k   over 


1,529,517 

1,579,572 

2,109,129 

585,192 


41,033 
45,698 
67,271 
25,560 


total 
(Ayerago) 


9,975,942 


458,876 


Under  il 
(1  to  $2 
t2  to  (5 
%Z  &  over 


534,510 
1,283,734 
5,509,268 
2,846,530 


5,389 

48,109 
244,348 
141,030 


43.90 


3.06 
3.29 
4.10 
4.81 

4.46 


3.55 
4.95 
7.25 
4.67 


5.65 

5.55 
5.55 
4.11 
5,29 


5.13 


3.09 
2.77 
3.19 
5.99 


4.40 


1.61 
5.75 
4.44* 
4.95 


100.0 

78.5 
64.4 

105.1 
123.3 

114.4 


90.5 
126.9 
185.9 
119.7 


95.1 


es.9 

S5.9 
105.4 
15S.6 


80.5 

79.2 
71.0 
81.8 
102.5 


112.8 

41.5 
96.2 
115.8 
126.9 


Average  v3.90 


amount  the  averages  diminish  to 
$3.78,  for  the  stores  with  sales  of 
$80,000  to  $180,000,  and  increase  to 
$5.38  for  those  with  sales  of  $180,000 
and  over.  Within  each  group  of 
stores,  classified  by  size,  and  for  the 
total,  the  average  fixture  investment 


in  terms  of  sales  increases  as  expendi- 
tures for  advertising,  similarly  meas- 
ured, increase.  The  group  of  stores 
which  had  sales  between  $40,000  and 
$80,000  may  be  used  to  illustrate 
these  increases.  The  average  for  the 
entire    group    is    $4.36.     For    those 


384 


which  expended  the  smallest  amount 
for  advertising  in  relation  to  sales, 
the  average  is  $3.74,  and  for  those 
which  expended  most,  it  is  $G.18. 
That  is,  over  the  entire  range,  the 
average  amounts  increase.  Within 
the  range,  an  inverse  condition  ob- 
tains. 

Similar,  but  somewhat  different 
amounts  are  found  for  the  various 
groups  of  stores  in  each  of  the  other 
years  considered.  These  are  shown 
in  actual  amounts  and  in  graphic 
form  in  the  tables. 

In  Tables  281  to  284,  inclusive,  the 
average  amounts  expended  for  ad- 
vertising in  stores  classified  by  size 
and  by  fixture  investment  per  $100 
of  total  net  sales  are  expressed  as 
proportionate  parts  of  $100  of  sell- 
ing expense.  Table  281  refers  to  the 
combined  years  and  Tables  282  to 
284,  inclusive,  to  1919,  1918,  and 
1914,  respectively. 

For  the  combined  years,  the  aver- 
age expenditure  for  advertising  per 
$100  of  selling  expense  is  $20.85. 
Over  the  entire  range  of  stores,  the 
amounts  increase  as  the  stores  in- 
crease in  size,  the  average  amount  for 
those  with  sales  of  $40,000  to  $80,000 
being  the  lowest  for  any  of  the 
groups.  When  the  stores  are  classi- 
fied by  size  and  further  by  the 
amounts  invested  in  fixtures,  the 
amounts  expended  for  advertising 
per  $100  of  selling  expense  increase 
with  the  fixture  investment  per  $100 


of  total  net  sales.  To  this  general 
rule,  for  some  of  the  groups,  there 
are  clear  exceptions  and  too  much 
significance  ought  not  to  be  assigned 
to  the  tendency  indicated.  Indeed, 
probably  the  most  important  func- 
tion which  this  and  the  corresponding 
tables  for  the  individual  years  have, 
is  to  develop  norms  for  the  different 
groups  of  stores  and  not  the  tenden- 
cies for  the  amounts  to  increase  or  de- 
crease under  different  conditions  of 
operation.  The  facts  are  given  as 
they  were  determined  largely  be- 
cause, so  far  as  is  known,  they  rep- 
resent the  only  available  data  upon 
this  topic,  for  stores  in  the  retail 
field, 

C. — Summary. 

(1).  The  amounts  of  advertising 
expenditure  per  $100  of  total 
net  sales  increase  as  the 
amounts  invested  in  fixtures 
in  relation  to  sales  increase. 
This  holds  for  all  stores  and 
for  stores  of  a  given  size.  It 
is  true  also  for  each  of  the 
years. 

(2).  The  proportions  of  selling 
expense  attributable  to  ad- 
vertising increase  as  the 
amounts  invested  in  fixtures 
per  $100  of  total  net  sales  in- 
crease. This  holds  for  all 
stores  and  for  stores  of  a 
given  size. 


385 


TABLE  279 

TOTAL  NET  SALES,  FIXTURE  ACCOUNT,  AND  AMOUNT  OP  FIXTURE  ACCOUNT  PER  $100 

OF  TOTAL  NET  SALES,  FOR  135  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT 

OF    ADVERTISING   PER   $100    OF    TOTAL    NET    SALES,    1918 


■ 

AoouBt  of 

Advertising 

per  $100  of 

Total 

Bet  Salea 

number 

of 
Stores 

Total 
Bet  Salea 

Asumnt  of 
FLxtur* 
Account 

Fixture  Accoiint  per  $100  of  Total  Het  Sales 

Clateifled 

Total 
Bot  Bales 
(In  OOO's) 

Amount 

C 

Per  Cent, 

°'-^P'^«                            Actual 
20     40     60     80  100  120  140     . 

Total 
(Average) 

135 

$13,360,145 

$620,889 

$4.65 

100.0 

Cndop  i\ 
»1  to  «2 
$2  to  t3 
$3  *  over 

36 
44 
35 
20 

2,112,506 
<5,  258,  720 
4,278,153 
3,710,766 

87,312 
n9,980 
204,313 
209,284 

4.13 
3.68 
4.78 
5.64 

es.e 

79.1 
102. S 
121.3 

Total 
(Average) 

i 

Total 
(Average) 

37 

1,117,468 

62,352 

5.58 

120.0 

Dnder  $1 
»1  to  $3 

is  to  is 

$3  *!  over 

10 

la 

6 
3 

323,214 

520,474 

175,690 

88,090 

19,400 

28,226 

9,932 

4,794 

6.00 
5.42 
5. 65 
4.89 

129.0 
116.5 
121.5 
105.2 

tinder  t40 

Total 
(Average) 

56 

3,239,547 

132,364 

4.09 

88.0 

I 

ITnder  |l 
♦l  to  »2 
$2  to  tS 

#3  fc  over 

22 

16 

13 

5 

1,212,225 
912,773 
793,452 
321,097 

46,842 
38,913 
30,674 
15,935 

3.86 
4.26 
3.87 
4.96 

83.0 

91.6 

83.2 

106.7 

i*0  to  ^80 

: 

: 

Totp.l 
(Average ) 

28 

3,298,407 

127,804 

3.87 

83.2 

• 

Under  $1 
»1  to  $2 
♦2   to  «3 
♦3  i  over 

3 

7 
10 
8 

349,410 

886,258 

1,138,028 

924,  7U 

15,382 
26,456 
34,412 
51,554 

4.40 
2.99 
3.02 
5.57 

94.6 
64.3 

64. » 
119.8 

•ao  to  liso 

Total 
(Average) 

14 

5,704,723 

298,369 

5.23 

112.5 

• 

$180  h  over 

Under  |l 
»1  to  $2 
♦2  to  $3 
$3  &  over 

1 
3 
6 

4 

227,657 

939,215 

2,170,983 

2,366,868 

5,688 
26,385 
129,295 
137,001 

2.50 
2.81 
5.96 
5.79 

S3.B 
60.4 
128.2 
124. S 

'■ 

Averags  ^.65 


386 


TABLE  280 

TOTAL  NET  SALES,  FIXTURE  ACCOUNT,  AND  AMOUNT  OF  FIXTURE  ACCOUNT  PER  $100 

OF  TOTAL  NET  SALES,  FOR  135  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT 

OF    ADVERTISING    PER   $100    OF    TOTAL.   NET    SALES,    1914 


ClasBlfloa 

Ajaonnt  of 

Advert Is log 

per  $100  of 

Total 

Met  Sales 

Number 

of 
Stores 

Total 
Net  Salea 

Ajnonnt  of 
Fixture 
Account 

Plituro  Account  per  $100  of  Total  Bet  Sales 

N«t  Salaa 

Anount 

Per  Cent. 

Gr«PMc                                    1  ietual 
3      20      40      60      80   100    120   140    160  180  200 

Total 
(Average) 

ISS 

♦8,297,530 

$548,416 

$6.61 

100.0 

1 

Total 
( Avar age > 

Under  |1 
(1  to  tZ 
$8  to  $3 

$3  &   over 

24 
45 

32 
54 

879,996 
2,213,146 
2,037,002 
3,167.386 

37,372 
106,807 
130,053 
275, 184 

4.25 
4.78 
6.38 
8.69 

64.3 

72.3 

131.5 

1 

Total 
(Average ) 

63 

1,628,016 

85,076 

5.25 

79.1 

Valve  Ho 

Under  $1 
♦l  to  »2 
»a  to  $3 
|3  &  over 

16 
23 
13 
12 

436,148 
580,983 
342,457 
268,428 

18,951 
29, 311 
22,137 
14,677 

4.35 

5.05 
6.46 
5.47 

65.9 

■"^^ 

97.7 

: 

1 

Total 
(Average ) 

45 

2,464,877 

137,597 

6,58 

84.4 

1 

|40  t9  (80 

tinder  $1 
$1  to  $2 
♦2  to  »3 
$3  i>  over 

7 
17 
U 
10 

359,502 
931,265 
607,290 
666,820 

16,632 
52,177 
28,243 

40,545 

4.63 
6.60 
4.65 
7.15 

70.0 
84.7 
70.3 
108.2 

^^ 

Total 
(Average) 

22 

2,509.827 

128,153 

5.11 

77.3 

$00   to  tlSO 

Dnder  $1 
$1  to  $2 
$2  to  |3 
(3  «•  over 

1 
6 
6 

9 

84,346 

700,896 

701,449 

1,023,134 

1,789 
24,319 
47,705 
54,340 

2.12 
3.47 
6.80 
S.31 

32,1 

52. S 

102.9 

80.3 

Total 
(Average) 

S 

1,694,810 

197,590 

U.66 

176.4 

i 

tlSO  fc  OTar 

Uader  $1 
*1  to  «2 
te  to  |3 
»S  fc  over 

2 

3 

385,806 
1,309,004 

31,968 
166,622 

8.29 
12.65 

125.4 
191.4 

Avorago  $0.01 


387 


TABLE  281 

TOTAL   SELLING  EXPENSE,   ADVERTISING,   AND  AMOUNT  OF   ADVERTISING  PER  $100   OF 

SELLING  EXPENSE,   FOR   135    IDENTICAL    STORES   CLASSIFIED   BY    SIZE    AND 

BY  AMOUNT  OF  FIXTURE   ACCOUNT   PER  $100   OF   TOTAL  NET 

SMILES,     1919,     1918,     AND    1914,     COMBINED 


Amount  of 
Pljcturo  Account 

per  $100  of 
Total  Uat  Sales 

Hujnber 
of 

Store- 
years 

Total 
Selling 
Szpense 

Total 
Advertising 

Advertising  per  $100  of  Selling  Expense 

ClasBirisd 

Total 
Set  B&lea 
(In  000' e) 

Amount 

Per  Cent. 

Graphic                             Actual 
)     2p     4p     6p     80   100  1?0  140 

Total 
(Average ) 

405 

14,428,098 

$923,442 

S20.85 

_L     r       r .    r       p 

100.0 

1 

Ocder  $2 

t2   tc  ^ 
i4   to  t6 
t6  &;  ever 

72 
131 

86 
116 

832,922 

985,648 

798,319 

1,811,209 

147,345 

206,442 
182,392 
387,263 

17.69 
20.94 
22.85 
21.33 

84.8 

ICO.  4 
109.6 
102.5 

Total 

(Average) 

Total 
(AverRgp) 

112 

263,714 

54,347 

20.61 

98.8 

Under  §2 
?2  to  $4 
44  to  C5 
t5  &  ovsr 

14 
28 
27 

43 

25,921 

64,602 

58,105 

115,086 

5,788 
12,713 
U,755 
24,111 

22.33 
19.68 
20.20 
20.95 

107.1 
94.4 
96.9 

100.5 

tTmler  Uo 

^T 

Tctsl 
(Averape) 

153 

806,561 

145,442 

18.04 

86.5 

$40  to  teo 

Under  52 
$2  to  |4 
^4  to  $6 

$6  &  ovsr 

20 
65 
31 
39 

78,674 
314,078 
158,148 
255,461 

10,467 
61,735 
31,295 
41,947 

13.30 
19.66 
19.79 
16.42 

— i 

63.8 
94.3 
94.9 
78.8 

Tctcil 
(Average) 

98 

1,255,879 

253,444 

20.21 

96.9 

Under  f2 
€2   ts  ti 
^  to  $5 
$S  &  over 

27 

33 
19 
19 

507,174 
405,623 
274,227 
266,855 

56,997 
77,049 
61,961 
57,437 

18.56 
19.00 
22.59 
21.52 

89,0 

91.1 

108.3 

105.2 

tso  to  tieo 

1 

Total 
(Average) 

42 

2,104,144 

470,209 

22.56 

107.2 

Older  iz 
i2  to  C4 
$4  to  Se 
t6  t  over 

11 
7 
9 

15 

421,153 

201,345 

307,839 

1,173,807 

74,093 

54,947 

77,401 

263,766 

17.59 
27.29 
25.14 
22.47 

1 

84.4 
130.9 
120.6 
107.8 

flBO  i  over 

1 

^T" 

: 

Average  §20.85 


388 


TABLE  282 

TOTAL   SELLING  EXPENSE,   ADVERTISING,   AND   AMOUNT  OF   ADVERTISING   PER  $100   OF 

SELLING  EXPENSE,  FOR  135  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT 

OF  FIXTURE  ACCOUNT  PER  $100  OF  TOTAL  NET  SALES,  1919 


Classified 

Amotmt  of 
Fixture  Account 

per  $100  of 
Total  Hot  Sales 

number 

of 
Stores 

Total 
Selling 

Eixpenao 

Total 
Advertising 

Advertising  per  ftlOO  of  Selling  Expensa 

ToteO. 
Bet  Sales 
(la  ooo's) 

Amormt 

0 

Per  Cent. 

Graphic           1  Actual 
29  49  6<p  80  lOp  120  140  160 

Total 
(Average) 

135 

$1,992,310 

$412,745 

$20.72 

1 

100.0 

Under  $2 
$2  to  $4 
U   to  $6 
f 6  &  over 

53 
51 
23 
23 

555,232 
428,443 

326,474 
702, 161 

100,793 
95,916 
67,564 

150,472 

18.83 
21.92 
20.70 
21.43 

1 

90.9 
105.8 

99.9 
103.4 

Total 

1 

(Average) 

1 

1 

Total 
(Average ) 

12 

24,943 

S,686 

22.79 

110.0 

1 

Under  tz 
t2  to  U 
$4  to  $6 

56  tc   over 

2 
4 
9 

3 

5,398 
8,213 
7,582 
5,752 

1,875 
986 
928 

1,897 

55.18 
12.01 
12.34 
32.97 

266.3* 
58.0 
59.1 

159.7 

Under  ^0 

1 

Total 
(Average ) 

52 

229,272 

59,857 

17.38 

83.9 

f.40  to  Jeo 

Under  $2 
$2  to  i4 
*4  to  $6 

$6  &  over 

8 

28 

8 

e 

29,693 
118,454 
43,053 
38,072 

5,202 

24,255 

6,945 

5,455 

10.78 
20.48 
16.13 
14.33 

1 

52.0 
93.3 
77.8 
69.2 

1 

1 

Total 
(Average) 

43 

587,583 

104,534 

17.79 

85.9 

tao  to  Siao 

Under  $2 
$2  to  $4 

$4  to  $e 

fe  k   over 

20 
15 

7 
6 

226,744 
168,663 
96,369 

«5i802 

38,550 
50,856 
17,015 
18,313 

18.91 
18.29 
17.65 
19.12 

1 

81.6 
88.3 
85.2 
92.3 

^^^^^^^^ 

1 

Total 
(Average ) 

23 

1,150,510 

262,668 

22.83 

110.2 

Under  $2 
«2  to  U 

|4  to  $6 
$6  i  over 

e 

4 
5 
6 

275,397 
133,108 
179,470 
562,555 

57,366 

57,819 

42,676 

124,807 

20.83 
28.41 
23.78 
22.19 

1 

100.5 
137.1 
114.8 
107.1 

♦l80  i  over 

1 

^^^^^^^V""" 

Averace  $20'. 72 

roll  len^t2x  ncrt  sbouiS 


389 


TABLE  283 

TOTAL   SELLING  EXPENSE,   ADVERTISING,   AND  AMOUNT  OF  ADVERTISING   PER   $100   OP 

SELLING  EXPENSE,  FOR  135  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT 

OP  FIXTURE  ACCOUNT  PER  $100  OF  TOTAL  NET  SALES,  1918 


Amount  of 
Plxtura  Account 

per  5100  of 
Total  Bet  Sales 

Kumbor 

of 
Stores 

Total 
Selling 
Expense 

Total 
Advertising 

Advertising  per  $100  of  Selling  Expense 

Classified 
Total 

Amount 

Per  Cent. 

Bet  Sales 
(la  OOC'e) 

Graphlo 
)  2p  40   60   80  lOp  120  14| 

Actual 
0 

Total 
(Average) 

135 

»1,  473,  360 

♦293,780 

$19.94 

lOO.O 

Total 

Under  t2 
»2  to  »4 
$4  to  »6 
ie  h   over 

20 
45 
34 
36 

244,746 
370,632 
267,521 
590,559 

33,524 

76,136 

64,292 

120,829 

13.70 
20.28 
24.03 
20.46 

1 
1 

68.7 
101.7 
120.5 

102.6 

(Average) 

Total 
(Average ) 

37 

92,371 

17,642 

19.10 

1 

95.8 

1 

Under  J2 
♦2  to  ^ 
*4  to  »6 

$6  i  over 

4 

8 

11 

14 

9,959 
19,976 
23,674 
38,762 

1,735 
4,076 
5,383 
6,448 

17.42 
20.40 
22.74 
16.63 

87.4 
102.3 
114.0 

89.4 

Ucder  |40 

^^^^^^^ 

Total 
(Average) 

56 

299,694 

51,826 

17.29 

86.7 

I 
1 

^  to  $80 

Under  $2 
$2  to  U 
U   to  $G 
$6  k   over 

8 
22 
15 
11 

53,916 

121,256 

65,955 

78,567 

4,353 
22, 641 
12,045 
12,787 

12.33 
IB.  67 
18.26 
16.28 

64.3 
93.8 
91.8 
81.6 

1 

Total 
(Average) 

28 

363,676 

76,369 

21.00 

105.3 

Coder  $2 
i2   to  •»4 

■^   to  ie 
56  &  over 

6 

12 

S 

6 

65,117 

161,063 

67,483 

80,013 

10,709 
31,290 
16,639 
17,731 

19.43 
19.43 
24.66 
22.16 

i 

97.4 
97.4 
123.7 
111.1 

|30  to  $180 

■l' 

1' 

Total 
(Average) 

14 

717,619 

147,943 

20.62 

103.4 

1 

♦iSO  8t  over 

Under  J2 
|2  to  (4 
♦4  to  *5 

♦6  4  over 

3 

3 
9 

6 

145,756 

68,257 

110,409 

393,217 

16,727 
17,128 
30,225 
83,863 

11.48 
25.10 
27.38 
21.33 

57.6 
125.9 
137.5 
107.0 

1 

, 

Average  $19.94 

390 


TABLE  284 

TOTAL   SELLING  EXPENSE,   ADVERTISING,   AND  AMOUNT  OF   ADVERTISING   PER  $100   OF 

SELLING  EXPENSE,  FOR  135  STORES  CLASSIFIED  BY  SIZE  AND  BY  AMOUNT 

OF  FIXTURE  ACCOUNT  PER  $100  OF  TOTAL  NET  SALES,  1914 


Anoont  of 
Fixture  Account 

per  tlOO  of 
Total  Set  Salea 

Hujnbor 

of 
Stores 

Total 
Selling 
KxpenBO 

Total 
Advertising 

Advertising  per  $100  of  Selling  Erpense 

Clasoiried 

Total 
Vet  Sales 

AjoouQt 

Per  Cent. 

(In  OOO's) 

Or&phle                    1  Actual 
?      SP      4p      6p      8p    lOp   120    140 

Total 
(Average) 

135 

$962,428 

$216,817 

$22.54 

100.0 

Under  |2 
|2  to  $4 
ft  to  46 
$6  &  over 

14 
56 
29 
57 

52,942 
186,673 
204,324 
518,489 

13,028 

37,391 

50,536 

115,962 

24.61 
20.03 
24.75 
22.57 

1 

109.2 
88.9 

109.7 
99.6 

Total 
(AverEge) 

Total 
(Avera^ ) 

63 

146,398 

51,019 

21.19 

94.0 

teder  i-tO 

Under  |2 
iz  to  U 
U  to  is 

|6  k  over 

S 
16 
IS 
26 

12,664 
56,413 
26,849 
70,672 

2,178 

7,651 

5,424 

15,766 

17.34 
21.01 
20^,20 
22.34 

76.9 
95.2 
89.6 

Total 
(Average) 

45 

277,595 

53,759 

19.38 

86.0 

t40  to  tSO 

Under  *2 
$2  to  U 
|4  to  $6 

$6  8e  over 

15 

8 

20 

15,065 

74,568 

49,140 

138,822 

2,912 
14,837 
12,305 
25,705 

19.33 
19.95 
25.04 
17.08 

85.8 
88.5 
111.1 
7S.e 

Total 
(Average) 

22 

502,620 

72,541 

23.97 

106.5 

Under  t2 
$2  to  t4 
$4  to  is 
$6  St  over 

2 

6 
7 

7 

25,513 

75,892 

110,375 

91,040 

7,938 
14,903 
28,307 
21,393 

31.36 
19.64 
25.65 
25.50 

139.1 
87.1 
113,8 
104.5 

tSO  to  tl80 

1 

^ 

1 

1 

Total 
(Average) 

5 

256,015 

59,598 

25.25 

112.0 

$130  k  over 

Older  (2 
t2  to  U 
t4  to  $6 
|6  at  over 

1 

4- 

17,960 
218,055 

4,500 
55,098 

1 

1 
1 

111'.2 
112.1 

" 

1 

Averego  $22.54 


391 


VI.     OTHER  SELLING  EXPENSE 


1. — YEARLY  AMOUNTS  OP  OTHER  SELL- 
ING EXPENSE  FOR  STORES  CLASSI- 
FIED BY  YEARS^  BY  SIZE,  AND  BY 
LOCATION. 

The  foregoing  discussion,  pages  187 
to  291,  has  to  do  with  the  expenditures 
for  wages  and  salaries  and  advertis- 
ing which  are  properly  chargeable  to 
selling  expense,  as  defined  in  this 
study.  The  present  section  has  to  do 
with  a  group  of  miscellaneous  ex- 
penses, which  include  expenditures 
for  wrappings  and  containers,  bushel- 
ling, and  delivery.  In  view  of  the 
discussion  in  Volume  III  of  the 
Bureau's  study  of  Costs,  Merchandis- 
ing Practices,  Advertising  and  Sales 
in  the  Retail  Distrihntion  of  Clothing, 
it   is  thought   to   be   unnecessary  to 


discuss  the  expenses  for  these  differ- 
ent items  separately.  Accordingly, 
they  have  been  grouped  under  one 
general  heading,  which  for  conveni- 
ence is  called  "other"  selling  ex- 
pense. Moreover,  the  analysis  is  con- 
densed, the  tables  showing  in  Section 
1  only  the  total  amounts  for  stores 
classified  by  years,  by  size,  and  by 
location.  Under  Sections  2,  3,  and  4, 
respectively,  the  stores  are  further 
classified  according  to  amounts  of  in- 
ventory, amounts  of  sales  per  full- 
time  sales-person,  and  amounts  of 
fixture  investment  per  $100  of  total 
net  sales.  For  the  stores  so  classified, 
the  expenses  are  expressed  in  terms 
of  total  net  sales  and  total  selling  ex- 
pense. 


TABLE  285 

AMOUNT  OF  OTHER  SELLING  EXPENSE  PER  $100  OP  TOTAL  NET  SALES  AND  PER  $100 

OF  TOTAL  SELLING  EXPENSE,  FOR  154  IDENTICAL  STORES  CLASSIFIED 

BY    SIZE,    1919,    1918,    AND    1914 


Dumber 

of 
Store- 
yoara 

Other  Selling  Expense  per  $100  of 
Total  Het  Sales 

Other  Selling  Expanse  par  $100  of 
Total  Selling  Expense 

Yeara 

Ajuount 

Per  Cent. 

Amount 

Per  Cent. 

<^'P*^°          Actual 
?  20  40   60  80  100  12;0 

Oraphlo          Actual 
?  2P   4p  60   80  100  ISO 

Total 
(Average) 

462 

51.30 

h 

100.0 

$12.06 

1 

1919 

154 
164 
1B4 

1.24 
1.35 
1.35 

95.4 
103.8 
103.8 

11.94 
12.39 
11.81 

1018 

1914 

■ 

Average  $1.30 


Averaga  fl^^OO^ 


392 


A. — Yearly  Amaunts  of  Other  Sell- 
ing Expense  per  $100  of  Total 
Net  Sales  and  per  $100  of  Total 
Selling  Expense,  1919,  1918,  and 
1914. 
In  Table  285,  the  miscellaneous  or 
other  expense  of  154  identical  stores 
is  expressed  in  terms  of  $100  of  total 
net  sales  and  $100  of  selling  expense 
for  the  years  1919,  1918,  and  1914, 
individually  and  combined.  For  the 
combined  years,  $1.30  per  $100  of 
total  net  sales  was  expended  under 
this  heading;  the  corresponding 
amount  per  $100  of  selling  expense 
was  $12.06.  For  1914  and  1918,  the 
average  expenses  per  $100  of  total 
net  sales  for  these  miscellaneous  pur- 
poses were  identical;  between  1918 
and  1919,  the  average  amounts  de- 
creased. In  terms  of  total  selling  ex- 
pense, the  average  amount  increased 
between  1914  and  1918,  and  decreased 
between  1918  and  1919.  The  graphic 
part  of  this  table  shows  the  relations 
of  the  amounts  for  the  stores  in  the 
different  years.  It  should  be  remem- 
bered that  they  represent  the  balance 
which  is  left  after  wages  and  salaries 
and  advertising,  as  constituent  parts 
of  selling  expense,  have  been  paid. 
The  stores  which  are  used  in  this 
comparison  are  the  same  as  those 
found  in  the  analysis  of  wages  and 
salaries  and  advertising, 

B. — Yearly  Amounts  of  Other  Sell- 
ing Expense  per  $100  of  Total 
Net  Sales  and  per  $100  of  Total 
Sellinrg  Expense,  for  Stores  in 
1919,  1918,  and  1914,  Classified 
by  Size. 


In  Table  286,  the  154  stores  are 
classified  by  size  and  further  by 
years.  For  each  group  of  stores  for 
each  of  the  years  the  other  selling 
expenses  are  expressed  in  terms  of 
sales  and  of  selling  expense.  As  thus 
expressed,  the  amounts  increase  as 
stores  increase  in  size.  For  each 
group  of  stores  classified  by  size,  the 
amounts  in  terms  of  sales  tend,  on  the 
whole,  to  decrease  between  1914  and 
1918,  and  1918  and  1919.  The  same 
observation  applies  to  the  amounts 
for  one  group  of  stores  when  they  are 
expressed  in  terms  of  selling  expense. 
For  the  remaining  groups,  the 
changes  in  the  amounts  are  generally 
in  an  inverse  direction.  There  are 
certain  exceptions  to  this  rule,  and 
these  are  brought  out  in  the  actual 
amounts  and  graphic  summary  in 
Table  286. 

C. — Yearly  Amounts  of  Other  Selling 
Expense  per  $100  of  Total  Net 
Sales  and  per  $100  of  Total  Sell- 
ing Expense,  for  Stores  in  1919, 
1918,    and    1914,    Classified    hy 
Size  of  City  in  Which  Located* 
In  Table  287  the  miscellaneous  sell- 
ing expenses  are  shown  for  the  154 
stores  classified  by  the  size  of  the  city 
in  which  located  and  also  by  years. 
The   method   of   expressing  them   is 
first,  in  terms  of  sales,  and  second,  in 
terms  of  selling  expense.      For  the 
345  store-years  for  stores  in  the  small 
cities  these  expenses  constitute,  on  the 
average,  $0.93  per  $100  of  total  net 
sales,   while  for  the  117   store-years 
for  the  stores  in  the  large  cities,  the 
*  Population  figures  are  for  1920. 


393 


TABLE  286 


AMOUNT  OF  OTHER  SELLING  EXPENSE  PER  $100  OF  TOTAL  NET  SALES  AND  PER  $100 

OF  TOTAL  SELLING  EXPENSE,  FOR  154  IDENTICAL   STORES  CLASSIFIED 

BY    SIZE,    1919,    1918,    AND    1914 


!•«•• 

Hiirbor 

cf 
Storo- 
years 

Otbor  Sailing  Apeaae  per  $100  of  Total  Sot  £aleg 

Other  Selling  Sipenae  per  $100  of 
Total  Selling  Kipenae 

let  ha«B 

ijoo-cnt 

for  Cent. 

Araount 

Per  Cent. 

(In  OOO's) 

OrapMo 
3     20     40      60     80  100   120   140   16C 

Actual 

'^'^«                    1     Aetual 
0      20      40      60      80  100   120 

Total 

4*2 

♦l.SO 

100.0 

$12,06 

100.0 

; 

1319 
191S 
1S14 

1»4 
164 
154 

1.24 
1.55 
1.55 

95.4 
1C5.8 
105.8 

11.94 

12.39 
11.81 

89.0 

102.7 
97.9 

Ui«ne»' 

■^^■^^ 

^^ 

i 

Total 

(ATOrago) 

129 

0,88 

67.7 

10.45 

86.7 

Ondor  ♦*0 

10X9 
1918 
1914 

14 

42 

73 

0.81 
0.88 

o.es 

62.5 
67.7 
70.8 

11.90 
10.86 
9.97 

98.7 
90,0 
82,7 

Tot«l 
(ATorago ) 

172 

l.U 

es.4 

11.98 

99.3 

$40  to  leo 

1919 
1913 
1914 

67 
6S 
52 

0.81 
1.25 
1.55 

62.3 
94.6 
102.5 

10.62 
12.97 
11.95 

68.1 
107.5 
98.9 

i 

Total 
(ATorage) 

117 

l.SO 

100.0 

11.96 

99.2 

»6o  to  tieo 

1919 
1918 
1914 

58 
55 
24 

1.26 
1.55 
1.55 

S6.9 
103.8 
103.8 

12.01 

12.48 
11.12 

9£>.6_ 
103.5 
92.2 

i 

Total 
( ATsrago ) 

44 

1.50 

115,4 

12.41 

102.9 

tiao  k  oTsr 

1919 
1918 

1914 

£5 
14 

6 

1.39 
1.55 
1.96 

106,9 
119,2 
150.0 

12.16 
12.27 
13.98 

101.0 
101.7 
115.9 

; 

Average  $1.50 

Average  $12.06 

corresponding  expense  is  $1.65.  In 
terms  of  selling  expense  the  average 
amount  for  the  stores  in  the  small 
cities  is  $9.99,  and  for  those  in  the 
large  cities,  $13.60,  From  year  to 
year,  for  the  stores  in  both  city- 
groups,  the  amounts  per  $100  of  total 
net  sales  generally  decrease.  In  terms 
of  selling  expense,  for  the  stores  in 
the  small  cities,  the  amounts  increased 
from  year  to  year;  but  for  those  in 
the   large   cities   they   increased   be- 


tween 1914  and  1918,  and  decreased 
between  1918  and  1919. 

£>. — Yearly  Amounts  of  Other  Selling 
Expense  per  $100  of  Total  Net 
Sales  and  per  $100  of  Total  Sell- 
ing Expense,  for  Stores  Classi- 
fied hy  Size  and  hy  Size  of  City* 
1919,  1918,  and  1914,  Combined. 

In   Table  288  the  records  of  154 
identical  stores  are  combined  for  the 
*  Population  figures  are  for  1920. 


394 


TABLE  287 


AMOUNT  OF  OTHER  SELLING  EXPENSE  PER  $100  OF  TOTAL  NET  SALES  AND  PER  $100 

OF  TOTAL  SELLING  EXPENSE,  FOR  154  IDENTICAL  STORES  CLASSIFIED 

BY    SIZE   OF    CITY,    1919,    1918,    AND    1914 


Years 

Number 

of 
Store- 
years 

Other  Soiling  Exponae  per  $100  of 
Total  Net  Salee 

Other  Selling  Ej^penae  por  JlOO  of 
Total  Soiling  Expanse 

size 

of 

City 

(la  OOO'a) 

Amount 

( 

Per  Cent. 

Amount 

Per  Cent. 

Oraphlo                     |     Actual 
)      20      40      60      60  100   120   140 

Oraphlo                       Actual 
3      20      4<)      60      80  100   120 

Total 
(Avsrage) 

4S2 

U.SO 

100.0 

$12.06 

100.0 

i 

Total 

1919 
1918 
1914 

154 
154 
154 

1.24 
1.55 
1.35 

95.4 
lOS.B 
103.8 

11.94 
12.39 
11.81 

£2.0 
102.7 
97.9 

(A7erag«) 

J 

1 

Total 
(Average) 

MS 

0.95 

71.5 

9.99 

82.8 

i 

1919 
1918 
1914 

115 
US 

lis 

0.81 
0.96 

0.S6 

70.0 
73.8 

73.8 

10.28 
10.08 
9.42 

84.7 
83.6 

78.1 

40 

Total 
(Average ) 

117 

1.65 

126.0 

13.60 

112.8 

i 

191» 
1918 
1914 

59 
59 

S» 

1.55 
1.7S 

1.79 

119.2 
133.1 
137.7 

13.14 
14.09 
13.83 

109.0 
116.8 
U4.7 

over 

: 

: 

■ 

Average  $1.30 


Average  $12.06 


years  1919,  1918,  and  1914.  In  this 
table  the  basis  of  classification  is  the 
location  of  the  stores  and  their  size. 

For  the  462  store-years,  for  the 
stores  irrespective  of  location,  the 
average  amount  of  miscellaneous  ex- 
pense per  $100  of  total  net  sales 
is  $1.30.  As  the  stores  increase  in 
size,  the  expenditures  increase,  the 
smallest  average  amount  being  $0.88, 
for  the  stores  with  sales  under 
$40,000,  and  the  largest,  $1.50  for 
those  with  sales  of  $180,000  and  over. 
Similar  increases  hold  also  for  stores 
of  increasing  size  when  classified  by 
location.  Just  how  rapid  these  in- 
creases are,  may  be  observed  by  con- 
sulting the  table. 

Table  288  also  shows  the  amounts 


which  other  selling  expense  consti- 
tutes of  each  $100  of  total  selling  ex- 
pense. For  the  combined  stores  irre- 
spective of  size,  the  average  is  $12.06. 
The  smallest  amount  characterizes 
the  stores  with  smallest  sales  and  the 
largest  amount,  those  with  largest 
sales.  Over  the  entire  range  of  sizes, 
the  average  amounts  vary  from  $10.45 
to  $12.41.  For  the  stores  in  the  small 
and  in  the  large  cities,  the  average 
amounts  on  the  whole  seem  to  de- 
crease as  the  size  of  the  stores  in- 
creases, if  the  eight  stores  in  the  large 
cities  having  the  smallest  sales  are 
omitted  from  consideration.  The  aver- 
age for  this  group  is  clearly  an  ex- 
ception to  the  rule  and  suggests  that 
the  data  are  probably  incomplete. 


395 


TABLE  288 


AMOUNT  OF  OTHER  SELLING  EXPENSE  PER  $100  OF  TOTAL  NET  SALES  AND  PER  $100 

OF  TOTAL  SELLING  EXPENSE,  FOR  154  IDENTICAL  STORES  CLASSIFIED  BY 

SIZE  OF  CITY  AND  STORE,  1919,  1918,  AND  1914,  COMBINED 


Total 
ll«t  Salsa 
(la  OOO'e) 

Jimber 

or 
Store- 
year  0 

ether  SoniTiB  Expenae  per  $100  of  Total  5et  Sales 

Other  Selling  Expense  per  $100  of 
Total  Selling  Ejcpenae 

SI  I* 

of 

(In  ooo'i) 

Aaount 

Far  Cent. 

Amotrnt 

Per  Cent. 

Graphlo                             j    ActueJl 
P     20      40      60     80   100   1^   140  160 

Orayhlc                                  Actual 
p      20     40     60      80   100   1?0   140   1^0 

Tctal 
(Av!r«g«) 

48S 

n.30 

^^^1 

100.0 

$12-.06 

100.0 

" 

Itadsr  J40 
*40  to     $30 

iao  to  tiso 
$130  i  over 

128 
172 
117 
44 

o.ea 
1.11 

l.JO 
1.50 

67.7 
85.4 
100.0 

115.4 

icr.4s 

11.98 
11.96 
12.41 

86.7 

(Averftg* ) 

- 

545 

a.  93 

71.5 

9.99 

82.8 

(A7!n.s») 

Under  (40 
»tO  to     »S0 
tao  to  tiso 

$180  k  over 

121 

ise 

77 
9 

0.92 
0.89 
1.02 
0.95 

70.3 
66.2 
78. S 
73.1 

11.09 

e.84 

9.98 
9.13 

M 

75,7 

Totol 
(Avoragfl) 

117 

1.6S 

126.9 

13.60 

112.8 

». 

— 

«0  ma 

Dndsr  UO 
»40  to    teo 
tec  to  tiBo 

llBO  &  over 

e 

34 

40 
» 

0.43 
1.58 
2.05 
X.S7 

33.1 
121.5 
157.7 
12a.8 

4.21 
17.86 
14.91 

12.79 

34.9 

125.6 

106.1 

ATersgv  $1.30 


Avereieg  $12<(M 


E. — Summary. 

(1).  The  amounts  of  other  selling 
expense  per  $100  of  total  net 
sales,  for  stores  irrespective 
of  size,  remained  constant  be- 
tween 1914  and  1918,  and 
decreased  between  1918  and 
1919.  For  stores  of  a  given 
size,  the  amounts  decreased 
from  year  to  year. 

2).  The  proportion  of  total  sell- 
ing expense  attributable  to 
other  selling  expense,  for 
stores  irrespective  of  size,  in- 
creased between  1914  and 
1918,  and  decreased  between 
1918  and  1919.    For  stores  of 


a  given  size,  the  direction  of 
change  was  not  uniform. 

(3).  The  amounts  of  other  selling 
expense  per  $100  of  total  net 
sales  increase  with  the  size  of 
the  store.  This  holds  for  each 
of  the  years  and  for  stores 
located  either  in  small  or  in 
large  cities. 

(4).  The  proportion  of  selling  ex- 
pense attributable  to  other 
selling  expense,  for  stores 
irrespective  of  location,  in- 
creases as  stores  increase  in 
size.  When  the  stores  are 
classified  by  the  size  of  the 
city     in    which    located,    the. 


396 


amounts  tend  to  decrease  as 
the  size  of  the  store  increases. 

(5).  For  stores  of  a  given  size,  the 
amounts  of  otlicr  expense  per 
$100  of  total  net  sales  are 
higher  in  the  large  cities  than 
in  the  small  cities. 

(6).  For  stores  of  a  given  size,  the 
proportions  of  total  selling 
expense,  classified  as  other 
selling  expense,  are  higher  in 
large,  than  in  small  cities. 

2. YEARLY  AMOUNTS  OF  OTHER  SELL- 
ING EXPENSE  PER  $100  OF  TOTAL 
NET  SALES  AND  PER  $100  OF  TOTAL 
SELLING  EXPENSE,  FOR  STORES 
CLASSIFIED  BY  AMOUNTS  OF  INVEN- 
TORY PER  $100  OF  TOTAL  NET  SALES, 

1919,  1918,  AND  1914. 

In  Table  289  the  records  of  149 
stores  are  studied  in  order  to  deter- 
mine for  the  combined  years  and  for 
each  of  the  years  1919,  1918,  and 
1914,  the  average  amount  of  the  mis- 
cellaneous selling  expense  per  $100 
of  total  net  sales  and  per  $100  of  sell- 
ing expense  when  the  stores  are  clas- 
sified by  the  amount  of  their  inven- 
tory in  relation  to  sales.  This  section 
of  tlie  discussion  corresponds  to  sim- 
ilar analyses  in  the  parts  of  the  vol- 
ume relating  to  total  selling  expense, 
to  wages  and  salaries,  and  to  adver- 
tising. 

For  this  group  of  stores  the  aver- 
age amount  of  miscellaneous  selling 
expense  per  $100  of  total  net  sales  is 
$1.28.  For  1914  the  amount  was 
$1.33;  for  1918,  $1.33,  and  for  1919, 
$1.24.     That  is,  the  amounts  are  es- 


sentially identical  with  those  for  154 
stores  shown  in  Table  285.  Within 
each  year  and  for  the  combined  years, 
these  expenses,  when  expressed  in 
terms  of  sales,  decrease  as  inventories 
in  relation  to  sales  increase.  The 
average  amounts  in  the  combined 
years  may  be  used  to  illustrate  this 
tendency.  For  the  stores  having  the 
smallest  inventory — less  than  $20  per 
$100  of  total  net  sales — the  average 
amount  is  $1.38.  A  similar  amount 
characterizes  those  stores  which  had 
inventories  between  $20  and  $40  in 
terms  of  sales.  The  smallest  amount, 
applying  to  those  which  had  the 
largest  inventories,  is  $0.98.  De- 
creases similar  to  these  hold  for  each 
of  the  different  years.  There  are 
some  exceptions  in  the  direction  of 
change,  but  these  are  relatively  few 
and  unimportant. 

Table  289  also  shows  the  amounts 
of  other  selling  expense  per  $100  of 
total  selling  expense.  The  average  for 
the  stores  in  the  combined  years  is 
$11.85.  In  1914,  it  was  $11.55;  in 
1918,  $12.16;  and  in  1919,  $11.76. 
When  the  stores  are  classified  by  the 
amounts  of  inventory  per  $100  of 
total  net  sales,  the  expenditures  for 
miscellaneous  selling  purposes  tend, 
on  the  whole,  to  decrease  as  the  in- 
ventories in  relation  to  sales  increase. 
For  the  combined  years,  the  decreases 
extend  from  $16.38  to  $10.47.  Sim- 
ilar decreases,  with  certain  excep- 
tions, are  found  for  the  stores  in  each 
of  the  different  years.  It  is  unneces- 
sary to  review  these  in  detail,  inas- 
much as  the  table  is  self-explanatory 
and  the  graphic  part  of  it  makes  it 


397 


easy   to    observe   these   relationships 
from  group  to  group. 

3. — YEARLY  AMOUNTS  OF  OTHER  SELL- 
ING EXPENSE  PER  $100  OF  TOTAL 
NET  SALES  AND  PER  $100  OF  TOTAL 
SELLING  EXPENSE,  FOR  STORES  CLAS- 
SIFIED BY  AMOUNTS  OF  SAIiES  PER 
FULL-TIME  SALES-PERSON,  1919, 
1918,  AND  1914. 

In  Table  290  the  records  of  146 
stores  are  presented  in  order  to  de- 
termine the  amount  of  other  selling 


expense  expressed  in  terms  of  sales 
and  total  selling  expense  for  stores 
classified  by  the  amount  sold  per  full- 
time  sales-person  for  the  years  1919, 
1918,  and  1914,  individually  and 
combined.  The  averages  for  the  entire 
group  for  the  combined  and  individ- 
ual years  closely  correspond  to  those 
shown  in  Table  289,  and  require  no 
particular  explanation.  "Within  each 
year  and  the  combined  years  there 
seems  to  be  no  unmistakable  tendency 
for  the  amounts  to  increase  or  to  de- 


TABLE  289 

AMOUNT  OP  OTHER  SELLING  EXPENSE  PER  $100  OF  TOTAL  NET  SALES  AND  PER  $100 

OF  TOTAL  SELLING  EXPENSE,  FOR  149  IDENTICAL  STORES  CLASSIFIED 

BY  AMOUNT  OF  INVENTORY  PER  $100  OP  TOTAL 

NET  SALES,  1919,  1918,  AND  1914 


Ancnmt  cf 
Inventory 
per  llOO  of 
Total 
Ket  galea 

n^Bber 

of 
Etore- 
years 

Other  Selling  E^anse  per  $100  of 
Total  Met  Balea 

Other  Selling  Expense  per  $100  of 
Total  Selling  Expense 

Years 

AnonDt 

Fer  Cent. 

Anmrnt 

Per  Cent. 

GrspMo 
20     4p     60     60  lOp  12p  140 

Aotnaa 

Orapblo 

?     2p     49     6p     80  lOp  12,0  14,0  1^0  ISO 

Actual 

Total 
(Avorape) 

447 

$1.2S 

lOO.O 

$ii';8S 

100.0 

Under  (40 
UO  to     $30 
teo  to  (IfiO 

Jl60  1  o»er 

14 

168 
177 

ee 

i.se 

1.S8 
1.16 
0.98 

107.8 
107.8 
90.6 
76.6 

i6.4e 

11.8S 
11.60 
10.47 

1J8.2 

100.0 
97.9 
88.4 

Total 

I 

(Average ) 

[ 

"""^    : 

: 

»)tal 
(Average) 

149 

l.M 

96.9 

•U.78 

99.2 

|40  to     too 
(80  to  tlSO 
$180  &  over 

1 
8S 
61 

8 

LIB 

1.26 

l.ie 

•.69 

lOT'.e 
98.* 
90.6 
53.9 

15.71 

u.4e 

12.14 
9.09 

132.6 
96.9 

102.4 
76.7 

1919 

^^ 

; 

Total 
(Average) 

149 

1.S9 

10S.9 

ie.16 

102.6 

Under  |40 
$40  to    $S0 
$60  to  $1S0 

$180  t  over 

S 

46 
CO 
40 

1.22 
1.47 
1.50 
0.96 

95. S 

■  114.8 

101.6 

76.0 

20.06 
11.73 
13.28 
10.33 

169.3 
99.0 

112.1 
87.2 

isie 

; 

Total 
(Average) 

149 

1.53 

10S.9 

11.65 

97.5 

Under  $40 
$40  to     $60 
$80  to  $180 

tleo  k  over 

« 
39 

66 
40 

1.64 

r.68 

0.99 
1.09 

128.1 
ISl'.S 
7T.S 
BS.2 

1S.04 
13.26 

9.08 

126.9 
111.9 
76.4 
92.S 

18U 

: 

10.94 

: 

A7era£e  $1.£8 


Averftgo  $11«85 


398 


crease  with  the  sales  per  full-time 
sales-person.  A  relationship  between 
the  amounts  of  such  expenses  and  the 
activity  of  the  salesmen  can  hardly 
be  expected.  The  data  are  presented 
in  this  form  largely  to  complete  the 
analysis  and  in  the  hope  that  they 
will  be  of  service  to  merchants  in 
comparing   their   expenses  with   the 


amounts  for  the  different  groups  of 
stores. 

Table  290  also  shows  the  amounts 
of  other  selling  expense  as  proportion- 
ate parts  of  selling  expense.  For  the 
combined  years,  there  seems  to  be  a 
general  tendency  for  this  expense  to 
increase  as  the  amounts  sold  per  full- 
time    sales-person    increase.     In    the 


TABLE  290 

AMOUNT  OF  OTHER  SELLING  EXPENSE  PER  $100  OF  TOTAL  NET  SALES  AND  PER  $100 
OF  TOTAL  SELLING  EXPENSE,  FOR  146  IDENTICAL  STORES  CLASSIFIED 
BY     AMOUNTS     OF     SALES     PER     FULL-TIME     SALES- 
PERSON,    1919,      1918.     AND     1914 


Amount  of 
Sales  per 
Pull-time 
Sales-person 
(In  OOO'e) 

Nianber 
or 

Other  SslUng  Sxponso  per  $100  or  Total  Bet  Saloa 

Other  Selling  Expense  per  ilOO  of 
Total  Selling  Expense 

YeoM 

Per  Cent. 

r 

1                              Per  Cent. 

Storo- 
yeare 

Amount 

Oraphlo                             1    Victual 
0      20     40      60     80   iqo    1^0   140  160 

p     20     40     60      80   1()0   120   140 

Total 
(Areraga) 

438 

$1.28 

100.0 

$11.94 

100.0 

Under  $12 
tl2  to  $16 
tl6  to  $24 
$24   to  $32 
$32  k  OTer 

151 
107 
118 
39 
23 

1.01 
1.39 
1.2« 
1.53 
1.31 

78.9 
108.6 

98.4 
119. S 
102.  S 

6.99 
12.61 
11.25 
15.22 
15.71 

7S.3 
1C6.5 

34.2 
127.5 
131.6 

Total 

(A.-orage) 

Total 
(ATorage ) 

14e 

1.22 

9S.3 

11.80 

98.8 

Dnder  $12 
$12   to  $15 
$16  to  $24 
*24   to  $52 
$32  &  over 

U 
30 
61 
21 
19 

1.10 
0.87 
1.09 
1.S8 

1.39 

es.g 

70.0 
65.2 
123. 4 
108.6 

12.01 

8.60 
9.?5 
15.85 
16.02 

100.6 
72.0 
80.0 
132.7 
154.2 

1919 

Total 
(Average) 

146 

1.34 

104.7 

12.25 

102.6 

• 

Vnder  $12 
$12  to  $16 
$16  to  $24 
$24   to  $32 
$32  «c   over 

50 
42 
37 
14 

S 

1.00 
1.3S 
1.49 
1.41 

0.42 

78.1 
105. S 
116.4 

110.2 
32.8 

9,78 
11.98 
13.  C8 

13.93 
7.60 

81.9 
100. J 
109.5 
116.7 

63.7 

1918 

"""""^ 

■ 

— 

Total 
(ATerags) 

146 

l.JS 

103.9 

11.77 

: 

93.6 

Ondop  $12 
$12  to  $16 
$16  to  $24 
$24  to  $32 
$32  &  over 

86 
33 
20 

4 
1 

0.99 
1.85 
1.51 
0.93 
0.74 

77.3 
144.5 
119.C 
72.7 
57.8 

8.24 
16.65 
15.35 

8.16 
25.62 

• 

^^^^ 

1^0.6 
60.3 

— 



. 

erase  $1.28 


Average  011.94 
'ruH  leneth  not  shoint 


399 


individual  years,  however,  the  aver- 
ages become  erratic  in  several  in- 
stances, suggesting  that  a  group  of 
miscellaneous  expenses  is  being 
studied,  and  that  there  are  elements 
which  control  them  other  than  vary- 
ing sales  of  salesmen. 

4. — YEARLY  AMOUNTS  OF  OTHER  SELL- 
ING EXPENSE  PER  $100  OF  TOTAL 
NET  SALES  AND  PER  $100  OF  TOTAL 
SELLING      EXPENSE,      FOR       STORES 


CLASSIFIED  BY  AMOUNTS  INVESTED 
IN  FIXTURES  PER  $100  OF  TOTAL 
NET   SALES,   1919,   1918,   AND  1914. 

In  Table  291  the  records  of  135 
stores  are  presented  for  the  years 
1919,  1918,  and  1914,  individually 
and  combined.  The  stores  are  classi- 
fied according  to  the  amounts  in- 
vested in  fixtures  per  $100  of  total 
net  sales.  For  each  group  of  stores 
classified  in  this  form,  the  amounts 


TABLE  291 

AMOUNT  OF  OTHER  SELLING  EXPENSE  PER  $100  OF  TOTAL  NET  SALES  AND  PER  $100 

OF   TOTAL   SELLING  EXPENSE,   FOR   135   IDENTICAL   STORES   CLASSIFIED 

BY  AMOUNT  OF  FIXTURE  ACCOUNT  PER  $100  OF  TOTAL 

NET    SALES,     1919,     1918,     AND     1914 


/^ount  'or 
PUtiu-e  icccunt 

per  $100  cf 
Total  Net  Bales 

1 ■ 

Other  Selllzig  Expense  per  (100  of 
Total  Het  Sales 

Other  SelUnj  Expense  per  tlOO  of 
Total   Soiling  Expense 

Hirzber 

of 
Stci  9- 

yeara 

Ano^ait 

Per  Cent. 

/-30\31t 

Per  Cent. 

araphlo                     1  Actual 
ep      40      6p      ep   lOp   12,0  14p 

OrapMo                          j   Aet,^ 
3      2p     4p      Sp     8p   100   12p   14^0 

TotEl 
(Average) 

405 

ii.29 

lOOf.O 

♦11.87 

! 

100.0 

; 

1 

Doder  t2 
$2  to  »« 
U  to  t6 

$6  8:  over 

72 

HI 
B6 
116 

1.11 

1.21 

i.se 

1.59 

86.0 
93.8 
117.8 
103.1 

10.7S 
12.83 
14.95 
10.51 

Total 

108.1 
125.9 
88. 5 

(Average) 

^^'""" 

(Average) 

ISS 

1.S4 

99.1 

11.74 

98.9 

^^^^^^1 

!• 

Dader  tZ 
♦Z  te  ti 
U  to  $6 
t6  St  over 

38 
61 
2S 
23 

1.16 
1.14 
1.39 
1.55 

I 

89.1 
88.4 
103.1 
104.7 

11.26 

13.02 
12.90 
10.78 

94.9 
108.7 
108.7 

90.8 

1919 

• 

Total 
(Average) 

135 

1.55 

104.7 

1?.1« 

lOfi.7 

Under  tZ 
tz  to  U 

it   to  (6 

J6  >c  over 

20 
45 
54 

36 

l.OS 
1.42 
1.58 

1-.28 

79.8 
110.1 
122.5 

99.2 

7.14 

14.24 

16.68 
10. IS 

77.0 
120.0 
139.7 

85.8 

1918 

' 

i 

Total 
(ATer^6e) 

135 

1.36 

104.7 

U.6S 

98.0 

1 

tmder  $2 
tz  to  H 

%*   t«  »8 

^  k  over 

14 
35 

29 
67 

1.07 
0.97 
1.77 
1.57 

82.9 
78.2 
1S7.2 
106.2 

1^.74 
9.55 
16.08 
10.61 

107.5 
80.5 

135.5 
88.5 

1914 

: : _j 

Averas*  ll.SS 


Averags  {11.87 


400 


of  other  selling  expense,  measured  in 
terms  of  sales  and  total  selling  ex- 
pense, have  been  computed.  For  the 
combined  years,  the  average  amount 
in  terms  of  sales  is  $1.29.  The 
amounts  for  the  individual  years 
closely  correspond  to  those  shown  in 
Tables  289  and  290. 

In  the  combined  years,  there  seems 
to  be  a  general  tendency  for  the 
amounts  to  increase  as  the  fixture  in- 
vestments per  $100  of  total  net  sales 
increase.  Moreover,  this  condition 
tends  to  obtain,  but  with  less  cer- 
tainty, in  each  of  the  years.  For  the 
stores  which  had  the  least  investment 
in  fixtures  per  $100  of  total  net  sales, 
the  average  miscellaneous  expendi- 
ture is  $1.11,  while,  for  those  which 
had  the  largest  investment  in  fixtures 
per  $100  of  total  net  sales,  the  aver- 
age is  $1.33.     From  year  to  year  it 


appears  that  these  amounts  are  essen- 
tially uniform. 

Table  291  also  shows  the  amounts 
of  other  selling  expense  expressed  as 
proportionate  parts  of  total  selling 
expense.  For  the  combined  years, 
$11.87  was  expended  for  this  purpose 
out  of  each  $100  of  selling  expense. 
As  the  amounts  invested  in  fixtures 
per  $100  of  total  net  sales  increase, 
there  seems  to  be  no  definite  tendency 
for  these  amounts  to  increase  or  to 
decrease.  In  some  of  the  groups,  the 
average  expenditures  for  this  purpose 
are  unduly  low.  In  others,  they  are 
abnormally  high,  again  suggesting 
the  fact  that  the  expenses  which  are 
combined  are  of  a  miscellaneous  type. 
By  expressing  them  in  terms  of  sell- 
ing expense  there  seems  to  be  no  ten- 
dency for  them  to  be  reduced  to  a 
uniform  or  standard  amount. 


401 


VII.     RATIOS  OF  OPERATION  FOR  STORES  CLASSIFIED  BY  RELA- 
TIVE   RATES    OF   NET    PROFIT    PER    $100    OF 
TOTAL    NET    SALES,    1919 


In  view  of  the  fact  that  the  differ- 
ent elements  of  expense  attributable 
to  selling  have  been  determined  for 
stores  classified  by  years,  by  size,  and 
by  location,  and  that  these  expenses 
have  been  expressed  in  terms  of  sales 
and  of  total  operating  expense  with 
simple  and  complex  units,  it  was 
thought  to  be  of  interest  to  merchants 
and  to  others  to  continue  the  classi- 
fication one  step  further.  Accord- 
ingly, for  1919,  251  stores  are  clas- 
sified by  their  rates  of  profit  per  $100 
of  total  net  sales.  The  single  store 
which  had  the  highest  rate  of  profit  in 
relation  to  sales  is  taken  as  100  per 
cent.,  and  from  this  amount  the  re- 
spective rates  of  profits  for  the  other 
stores  are  calculated  in  the  form  of 
percentages.  In  Tables  292  and  293 
and  in  Chart  VII,  the  different  ratios 
of  store  operation  are  shown  for  stores 
having  classified  rates  of  profit  ex- 
pressed in  this  form. 

Table  292  shows,  for  the  251  stores 
classified  by  size  and  by  relative  rates 
of  profit  per  $100  of  total  net  sales, 
the  cost  of  merchandise  sold,  the  gross 
trading  profit,  the  total  operating  ex- 
pense, and  the  selling  expense,  all  in 
terms  of  sales  and  expressed  on  an 
index  or  relative  basis.  The  amounts 
for  the  stores  in  each  classified  group 
which  had  rates  of  profit  of  60  per 
cent,  or  more  of  the  rate  for  the  store 
having  the  highest  profit  in  terms  of 
sales,  are  taken  as  100  per  cent.  The 
table  shows  that  as  the  relative  rates 


of  profit  increase,  the  costs  of  mer- 
chandise sold  per  $100  of  total  net 
sales  decrease ;  the  gross  margins  per 
$100  of  total  net  sales  increase;  the 
total  expenses  per  $100  of  total  net 
sales  decrease;  and  the  selling  ex- 
penses per  $100  of  total  net  sales  de- 
crease. This  condition  holds  for  each 
group  of  stores  when  classified  by 
size.  If  the  entire  number  of  stores 
is  taken  to  illustrate  these  facts,  it  is 
found  that  the  cost  of  merchandise 
sold,  for  the  stores  which  had  rates 
of  profit  less  than  20  per  cent,  of  the 
one  which  had  the  highest  rate  of 
profit,  is  39.3  per  cent,  higher  than 
the  cost  of  merchandise  sold  for  those 
which  had  the  highest  profit  in  rela- 
tion to  sales.  The  gross  margin  per 
$100  of  total  net  sales  is  41.1  per  cent, 
lower;  the  total  expense  per  $100  of 
total  net  sales  is  51.7  per  cent,  higher ; 
and  the  selling  expense  per  $100  of 
total  net  sales,  30.8  per  cent,  higher 
than  the  corresponding  amounts  for 
the  store  with  the  highest  profit. 
Similar  relationships  hold  also  for 
the  stores  of  different  size. 

In  Table  292  the  ratios  of  operation 
for  stores  of  a  given  size-group  are 
reduced  to  a  common  or  index  basis 
with  the  best  group  condition  repre- 
senting 100  per  cent.  In  Table  293, 
on  the  other  hand,  the  ratios  of  opera- 
tion are  reduced  to  an  index  basis, 
each  profit  condition,  when  based 
upon  the  best,  being  taken  as  100  per 
cent.     To  illustrate  these  differences 


402 


TABLE  292 

RATIOS  OF  OPERATION  FOR  STORES  CLASSIFIED  BY  SIZE  AND  BY  RELATIVE  RATES  OF 
NET  PROFIT  PER  $100  OF  TOTAL  NET  SALES,  1919 


tB4u  lualnn 

>f  H.J  .Front 

PV    »J0O   rf 

Total 

S«t   aiklM 

■ulam  100 

or 

ttona 

Ifwlu   VWIMTO  of  H«tt««  of  0p«r4tlfl« 

Cost  of  Uorcbjuidtio  Sold  por                       Oroia  lUrtlm  por  tloo 
•lOO  of   Totftl   lot  a^M                                     or   Tottl   Vt   .iaioo 

TotAl  OpontlBA  ezposM  (Mr 
1 100  of  Totol  Rot  Soloo 

tolllai  KiMuo  Mr  tlOO 

1                           OropJUo                                                  1              oropuia 
4«t>i«l  1                                                                              Ictvual 

1                     Or.pU< 
Aotul  1 

D                 0      20      to      SO     90   100   120   140 

0    >o    40    <o    aoioouou* 

»»«M» 

2S1 

...1 

120.4 

,        . 

0  K  » 
<«  M  40 
«>  W  W 
eo  b  orw 

3T 
ICS 

U 

lU 

100 

5 
0 

80.2 

117.S 

125.5 
104.3 
100.0 

Av«r«8* 

M 

112 

0 

01.7 

.1.2 

M.2 

0  U  20 
>0  ta  40 

•0  >  o^r 

4 

e 

9 

117 
100 
ICO 

e 

71.5 

114.1 
U.S 

7«.4 
73J 

100.0 

JMU-  Ho 

— 

4v*r*L«« 

« 

lU 

2 

75.1 

115.1 

U3.3 

0  to  M 
to  U  40 
40  to  60 
SO  ft  <mr 

10 
4S 

> 

U2 
123 

100 

5 

57.1 
49.1 

65.2 

153.7 
117.5 

lls.o 

U4.2 

e4.4 

Its  u  leo 

^^^ 

iv«roga 

8T 

159 

0 

131.2 

us.s 

0  CO  to 
to  to  40 

eo  h  OTOr 

24 

IM 

ISO 

e 

5: 

130.0 

153.5 

•30  U  lUO 

III 

*T4n«« 

40 

160 

4 

56.9 

lis. 3 

oo.e 

0   to  so 
to  t*  40 
40  to  SO 

10 
20 

17S 

" 

' 

141.4 

121.4 

i:': 

•ISO  i  ot«r 

for  stores  of  different  size,  the  group 
having  net  profits  per  $100  of  sales  of 
less  than  20  per  cent,  of  the  best  con- 
dition may  be  selected.  The  cost  of 
merchandise  sold  for  the  stores  with 
sales  of  under  $40,000  is  100.7  per 
cent,  of  the  average.  The  correspond- 
ing percentages  for  the  other  groups, 
in  order  of  size,  are  105.4,  105.1,  and 
96.4,  respectively.  The  gross  mar- 
gins for  the  same  stores  bear  the  fol- 
lowing relations  to  the  total  in  order 
of  size:  98.2  per  cent.,  86.7  per  cent., 
87.5  per  cent.,  and  109.0  per  cent. 
The  corresponding  percentages  for 
total  expense  per  $100  of  total  net 


sales  are,  respectively,  91.1,  84.1,  82.4, 
and  112.4,  and  for  selling  expense  per 
$100  of  total  net  sales,  48.6,  74.0, 
97.8,  and  108.3.  That  is,  as  the  stores 
increase  in  size,  the  costs  of  merchan- 
dise sold  first  rise  and  then  faU; 
gross  margins  fall  and  then  rise ;  total 
expenses  fall  and  then  rise;  and  sell- 
ing expenses  consistently  rise.  Sim- 
ilar tendencies  hold  for  the  stores 
having  profits  higher  than  those  of 
the  group  selected  for  illustration. 

Chart  VII  is  drawn  for  the  pur- 
pose of  showing  relative  ratios  of 
operation  for  the  251  stores  classified 
on  an  index  number  basis  according 


403 


TABLE  293 


RATIOS  OP  OPERATION  FOR  STORES  CLASSIFIED  BY  RELATIVE  RATES  OF  NET  PROFIT* 
PER  $100  OF  TOTAL  NET  SALES,  AND  BY  SIZE,  1919 


ladM  humDer*  i 


Vaa^r  Mo 

to    tW 
to  llBO 


|eo  to  1180 


ATorM* 


Jndor  |40 

|40  to   teo 

|W  to  llBO 
tlW  »  o<er 


Anr«go 


|eo  to  tiso 

llSO  k  o«or 


to  tUO 
lUK)  k  ovor 


0J0_ 


$100  of  Total  Nst  Si 


Sclline  £xponae  p«r  *100 
of   Tot«l  Net   &alei 


0     gp     4,0     60     ^  IQO   ly 


Ep  100   1^0_ 


to  rates  of  net  profit  per  $100  of  total 
net  sales.  The  rate  for  the  store 
having  highest  net  profit  is  taken  as 
100  per  cent.  In  computing  the  rela- 
tive rates  for  the  operating  ratios, 
the  amounts  for  the  stores  having 
profits  of  60  per  cent,  or  more  of  the 


best  condition  is  taken  as   100   per 
cent. 

The  chart  serves  to  illustrate  more 
readily  than  Table  292  the  direction 
of  change  in  the  ratios  of  operation 
for  stores  having  different  relativ<» 
positions  in  respect  to  profits. 


404 


CHART  VII 

INDEX  NUMBERS  OF  RATIOS  OP  OPERATION,  1919,  FOR  STORES  CLASSIFIED  BY  RELATIVE 
RATES  OF  NET  PROFIT  PER  $100   OF   TOTAL  NET   SALES,    1919 

Per  Cent. 


leo 

1 

_           rft\ 

.-   «>«_.{_                                             1 

160 
140 

><: 

Total   Selling  Expense 

C^ 

>.- 

**--^ 

:5*-eC" 

v_ 

1      1 

■•'''' 

'"'*'«^ 

liO 

• 

^t>. 

»v.»-..^ 

^>. 

lUO 
80 
60 
40 
20 

,."' 

^ 



_— — - 

^^-' 

" 

^-'''' 

0  t 

0  10 

10  t( 

5  20 

20  t 

0  30 

30  t( 

3  40 

40  t 

c  50 

60  to  60 

60  & 

ovpr 

Index  Munbers  pf  Net  Profits  per  $10C  of  Tottl  Uet  SbIps,  ]919 


405 


VIII.     CONCLUSION 


It  is  difficult  to  itemize  the  various 
conclusions  to  which  the  discussion 
of  selling  expense  in  clothing  stores 
has  led.  Certain  of  the  more  im- 
portant of  these  conclusions,  together 
with  the  amounts  of  expenditure  for 
the  different  items  of  expense,  are 
given  in  the  Summary,  and  there  is 
no  necessity"  of  repeating  them  here. 
It  may  be  worth-while,  however,  to 
sketch  in  bold  outline  the  relation  be- 
tween the  expenses,  and  to  indicate 
briefly  the  methods  by  which  the 
analysis  shows  that  merchants  may 
reduce  their  expenses  of  operation. 

The  total  selling  expense,  as  de- 
fined, constitutes  approximately  50 
per  cent,  of  the  total  operating  ex- 
pense and  10  per  cent,  of  sales.  When 
the  amounts  of  selling  expense  are 
measured  in  terms  of  sales,  they  in- 
crease with  the  size  of  the  store,  as 
do  also  the  components  of  the  total — 
wages  and  salaries,  advertising,  and 
miscellaneous  expense.  The  amounts 
of  wages  and  salaries  per  $100  of 
selling  expense  decrease,  while  the 
amounts  of  advertising  and  of  other 
expense  increase  with  the  size  of  the 
store.  From  year  to  year,  selling  ex- 
pense in  terms  of  sales  decreased, 
while  in  terms  of  total  expense  it  in- 
creased. 

As  inventories  per  $100  of  total 
net  sales  increase,  the  amounts  of  sell- 
ing expense  per  $100  of  total  expense 
decrease  and  per  $100  of  total  net 
sales  increase. 

As  the  amounts  sold  per  full-time 
sales-person  increase,  selling  expense, 


measured  in  terms  of  total  expense 
and  in  terms  of  sales  decreases. 

As  the  fixture  investments  in  rela- 
tion to  sales  increase,  the  amounts  of 
selling  expense  per  $100  of  total  ex- 
pense and  per  $100  of  total  net  sales 
increase.  "When  the  amounts  of  sell- 
ing expense  are  measured  in  terms  of 
sales,  for  stores  classified  according 
to  the  amounts  invested  in  fixtures 
per  100  square  feet  of  floor  space, 
they  increase  as  these  investments  in- 
crease. 

As  the  amounts  of  advertising  ex- 
penditure per  $100  of  total  net  sales 
increase,  the  amounts  of  selling  ex- 
pense per  $100  of  total  expense  and 
per  $100  of  total  net  sales  likewise 
increase. 

As  the  amounts  of  profits  per  $100 
of  total  net  sales  increase,  the  amounts 
of  selling  expense  and  of  total  ex- 
pense is  relation  to  sales  decrease. 

At  various  places  throughout  the 
volume,  attention  is  called  to  the  con- 
ditions under  which  the  amounts  of 
selling  expense  may  be  reduced.  In 
brief,  they  are  as  follows:  By  in- 
creasing advertising  in  relation  to 
sales,  by  decreasing  the  inventories  in. 
relation  to  sales,  by  increasing  the 
rapidity  of  stock  turnover,  by  in- 
creasing the  amounts  sold  per  full- 
time  sales-person  and  per  square  foot 
of  floor  space,  by  paying  salesmen  on 
a  commission  basis,  and  by  reducing 
the  amounts  invested  in  fixtures  in  re- 
lation to  sales.  The  amounts  of  the 
reductions  possible  through  these  dif- 
ferent means  are  shown  in  tabular 


406 


and  graphic  form  at  various  places 
throughout  the  volume. 

In  conclusion,  the  Bureau  wishes 
to  explain  its  attitude  in  undertaking 
the  study.  Every  care  has  been  used 
to  reduce  to  a  comparable  basis  the 
various  conditions  of  store  operation 
and  to  express  the  amounts  of  ex- 
penses in  terms  which  take  account  of 
them.  It  is  not  maintained  that  the 
study  establishes  the  ideal  conditions 
under  which  stores  should  operate. 
It  does,  however,  measure  those  pre- 
vailing at  the  time  the  study  was 
undertaken  and  sets  up  in  concrete 
and  measurable  form,  expenses  and 
their  tendencies  to  change  under  dif- 
ferent conditions  of  store  operation. 
That  is,  standards  of  expense  dis- 
tribution and  expense  tendencies  have 
been  determined. 


It  is  hoped  that  this  study  will 
have  a  value  beyond  that  associated 
solely  with  the  distribution  of  cloth- 
ing. The  principles  established,  as 
well  as  the  amounts  of  the  different 
expenses  would  seem  to  have  an  in- 
terest to  manufacturers  of  clothing, 
to  bankers,  to  advertising  agencies, 
and  to  others  who  co-operate  in  the 
field  of  distribution.  The  funda- 
mental principles  governing  sales  and 
selling  expense  are  not  restricted  to 
one  line  of  business,  nor  are  they 
solely  related  to  one  phase  of  retail 
distribution.  It  is  believed  that  the 
study  is  sufficiently  broad  in  its  scope 
and  comprehensive  in  its  method  to 
develop  basic  facts  and  relationships 
which  will  have  general  and  per- 
manent value. 


407 


IX.  INDEX. 

(The  citations  are  first,  to  table  or  chart  numbers,  and  second,  to  pages.) 

Accounts, 

fixture,  see  Fixture  account. 
Advertising,  as  used,  defined,  p.  306. 
expense  for,  see  Expense,  Advertising, 
reduction  of  selling  expense  by,  pp.  179,  185,  304. 
stores  classified  by  amounts  of, 

selling  expense,  amounts  of,  see  Expense,  Selling, 
wages  and  salaries,  amounts  of,  see  Expense,  Wages  and  salaries, 
summary  for,  see  Summary. 
Average  inventory,  see  Inventory. 
Average  stock,  defined,  p.   66. 

relation  of,  to  selling  expense,  27,  p.  65. 
Bonus  paid  to  regular  salesmen,  for  stores  classified  by  use  or  non-use  of, 
amounts  of 

selling  expense,  see  Expense,  Selling, 
wages  and  salaries,  see  Expense,  Wages  and  salaries, 
conclusions  regarding  use  of  in  relation  to  selling  expense,  pp.  126,  127 ; 
in  relation  to  wages  and  salaries,  pp.  261,  262. 
Capital  turnover,  defined,  p.  66. 

Commission  to  regular  salesmen,  for  stores  classified  by  use  or  non-use  of, 
amounts  of 

selling  expense,  see  Expense,  Selling, 
wages  and  salaries,  see  Expense,  Wages  and  salaries, 
conclusions  regarding  use  of  in  relation  to  selling  expense,  pp.  120,  122; 
in  relation  to  wages  and  salaries,  pp.  260,  262. 
Compensation  of  regular  salesmen,  methods  of,  see  Bonus,  and  Commission. 
Control  of  expenses,  see  Summary. 
Cost  of  merchandise  sold,  defined,  pp.  4,  75. 

index  numbers  of,  for  stores  classified  by  relative  rates  of  net  profit,  292, 
and  Chart  VII,  pp.  403-405. 
Expense, 
Advertising, 
amounts  of, 

per  $100  of  sales,  in  relation  to 

fixture  investments,  L,  p.  27;  270,  p.  375;  273-276,  pp.  378-382. 
inventories,  F,  p.  17;  229,  p.  323;  232-236,  pp.  327-331. 
location,  B,  p.  7;  217,  219,  pp.  311,  313;  221-224,  pp.  315-318. 
rent,  269,  p.  373. 
sales  per  full-time  sales-person,  H,  p.  20;  250,  p.   349;  252,  253, 

pp.  353,  354;  255-258,  pp.  357-360;  265,  266,  pp.  368,  369. 
selling  expense,  108,  p.  173;  117,  p.  183. 

size  of  store.  A,  B,  C,  pp.  5,  7,  8;  215,  p.  309;  221-224,  pp.  315-318. 
stock,    carried,    see   Inventories, 
turnover,  stock,  247,  248,  pp.  345,  346. 

years.  A,  p.  5;  212,  213,  pp.  306,  307;  215,  217,  219,  pp.  309,  311, 
313. 

409 


Expense, 
Advertising, 
amounts  of, 

per  $100  of  selling  expense,  in  relation  to 

fixture  investments,  L,  p.  27;  272,  p.  377;  281-284,  pp.  388-391. 
inventories,  G,  p.  19;  231,  p.  325;  241-244,  pp.  337-341;  246,  p.  343. 
location  of  store,  Chart  VI,  p.  15;  218,  220,  pp.  312,  314;  225-228, 

pp.  319-322. 
rent,  269,  p.  373. 
sales  per  full-time  sales-person,  J,  p.  23;  251,  p.  351;  259-264,  pp. 

361-366;  267,  268,  pp.  370,  371. 
size  of  store,  Charts  V,  VI,  pp.  14,  15;  E,  p.  16;  216,  p.  310;  225-228, 

pp.  319-322. 
years.  Chart  IV,  p.  13;  214,  216,  pp.  308,  310;  218,  220,  pp.  312,  314. 
per  store,  213,  214,  pp.  307,  308;  217,  218,  pp.  311,  312. 
defined,  p.  306. 

reduction  of  expenses,  through  increased  advertising,  pp.  179,  185,  304. 
relation  of,  to 

fixture  investments,  see  Fixture  account, 
inventories,  see  Inventory, 
selling  expense,  see  Expense,  Selling, 
stock  turnover,  see  Turnover,  stock, 
wages  and  salaries,  see  Expense,  Wages  and  salaries, 
summary  for,  see  Summary. 
Miscellaneous  or  other  selling, 
amounts  of, 

per  $100  of  sales,  in  relation  to 
fixture  investments,  291,  p.  400. 
inventories,  289,  p.  398. 

location  of  store,  B,  p.  7;  287,  288,  pp.  395,  396. 
sales  per  full-time  sales-person,  290,  p.  399. 
size  of  store,  A,  B,  C,  pp.  5,  7,  8;  286,  288,  pp.  394,  396. 
years.  A,  p.  5;  285-287  pp.  392-395. 
per  $100  of  total  selling  expense,  in  relation  to 
fixture  investments,  291,  p.  400. 
inventories,  289,  p.  398. 

location  of  store.  Chart  VI,  p.  15;  287,  288,  pp.  395,  396. 
sales  per  full-time  sales-person,  290,  p.  399. 
size  of  store.  Charts  V  and  VI,  pp.  14,  15;  E,  p.  16;  286,  288,  pp.  394, 

396. 
years.  Chart  IV,  p.  13;  285-287,  pp.  392-395. 
defined,  p.  392. 
summary  for,  see  Summary, 
Salaries,  see  Wages  and  salaries. 
Selling,  total, 
,  amounts  of, 

per  $100  of  advertising,  in  relation  to 

advertising,  107,  p.  171. 
per  $100  of  sales,  in  relation  to 

advertising,  N,  p.  31;  107,  p.  171;  109-114,  pp.  174-180;  116,  p.  182. 

410 


Expense, 

Selling,  total, 
amounts  of, 

per  $100  of  sales,  in  relation  to 
average  stock  carried,  27,  p.  65. 
bonus,  use  or  non-use  of,  71,  72,  pp.  123,  124. 
commissions,  use  or  non-use  of,  67,  68,  pp.  119,  120. 
fixture  investments,  L,  M,  pp.  27,  29;  84,  87,  pp.  142,  146;  89-92,  pp. 

148-151;  101,  102,  pp.  160,  162;  104,  105,  pp.  167,  168. 
inventories,  F,  p.  17;  19,  p.  55;  22-26,  pp.  59-64;  39,  42,  pp.  81,  84; 

101,  p.  160. 
location  of  store,  B,  p.  7;  6,  8,  pp.  39,  41;  10-14,  pp.  43-47. 
net  profit,  292,  293,  pp.  403,  404;  Chart  VII,  p.  405. 
rent,  K,  p.  25;  77,  p.  131;  80,  p.  135;  82,  83,  pp.  138, 140. 
sales  per  full-time  salesperson,  H,  p.  20;  43  p.  87 ;  46,  47,  pp.  91,  93; 

49-52,  pp.  96-100;  63,  64,  pp.  113,  115. 
size  of  store,  A,  B,  C,  pp.  5,  7,  8;  4,  p.  37;  10-14,  pp.  43-47. 
stock  carried,  see  Inventory,  also  Stock  turnover, 
turnover,  stock,  36,  37,  pp.  77,  78;  102,  p.  162. 
years.  A,  p.  5;  1,  2,  p.  35;  4,  6,  8,  pp.  37,  39,  41. 
per  100  sq.  ft.  of  floor  space  in  relation  to 

fixture  investments,  103,  p.  165. 
per  store,  2,  3,  pp.  35,  36;  6,  7,  pp.  39,  40;  103,  p.  165. 
per  $100  of  total  expense,  in  relation  to 

advertising,  N,  p.  31;  115,  118,  pp.  181,  184. 
bonus,  use  or  non-use  of,  73,  74,  pp.  125,  126. 
commissions,  use  or  non-use  of,  69,  70,  pp,  121,  122. 
fixture  investments,  L,  p.  27;  86,  p.  144;  97-100,  pp.  156-159. 
inventories,  G,  p.  19;  21,  p.  57;  32-35,  pp.  71-76. 
per  $100  of  total  expense,  in  relation  to 
location  of  store.   Chart  III,  p.  11;  7,   9,  pp.  40,  42;  15-18,  pp. 

48-51. 
sales  per  full-time  sales-person,  I,  p.  22;  45,  p.  90;  57-62,  pp.  106- 

112;  65,  66,  pp.  116,  117. 
size  of  store.  Charts  II,  III,  pp.  10,  11;  D,  p.  12;  5,  p.  38;  15-18,  pp. 

48-51. 
stock  turnover,  38,  p.  80. 

years.  Chart  I,  p.  9;  3,  5,  pp.  36,  38;  7,  9,  pp.  40,  42. 
defined,  p.  34. 

reduction  of,  methods  of,  see  Reduction  of  expenses,  and  Summary, 
relation  of,  to 

advertising,  see  Expense,  Advertising, 
fixture  investments,  see  Fixture  account, 
inventories,  see  Inventory. 

other  selling  expense,  see  Expense,  Other  selling, 
sales  per  full-time  sales-person,  see  Sales, 
wages  and  salaries,  see  Expense,  Wages  and  salaries, 
summary  for,  see  Summary. 
Total  operating, 
amounts  per  $100  of  sales,  in  relation  to  rent,  83,  p.  140. 

411 


Expense, 

Total  operating, 

index  numbers  of,  in  relation  to  net  profit,  292,  293,  pp.  403,  404;  Chart 

VII,  p.  405. 
relation  of,  to  selling  expense,  see  Expense,  Selling. 
Wages  and  salaries, 
amounts  of, 

per  $100  of  sales,  in  relation  to 

advertising,  N,  p.  31;  206,  208,  210,  pp.  297,  299,  302. 

bonus,  use  or  non-use  of,  180,  181,  pp.  261,  262. 

commissions,  use  or  non-use  of,  176,  177,  pp.  257,  258. 

fixture  investments,  L,  M,  pp.  27,  29;  189,  191,  pp.  273,  276;  193-196, 

pp.  278-281;  202,  203,  pp.  290,  292. 
inventories,  F,  p.  17;  136,  p.  206;  139-144,  pp.  209-215;  202,  p.  290. 
location  of  store,  B,  p.  7;  124,  126,  pp.  192,  194;  128-131,  pp.  196-199. 
rent,  K,  p.  25;  184,  186,  188,  pp.  266,  268,  270. 
sales  per  full-time  sales-person,  H,  p.  20;  154,  p.  228;  158,  159,  pp. 

234,  236;  162-165,  pp.  240-243;  172,  173,  pp.  252,  253. 
size  of  store.  A,  B,  C,  pp.  5,  7,  8;  122,  p.  190;  128-131,  pp.  196-199. 
stock  carried,  see  Inventories, 
turnover,  stock,  210,  p.  302. 

years.  A,  p.  5;  119,  120,  pp.  187,  188;  122,  124,  126,  pp.  190, 192,  194. 
per  $100  of  selling  expense,  in  relation  to 

advertising,  N,  p.  31;  207,  209,  pp.  298,  300;  211,  p.  303. 

bonus,  use  or  non-use  of,  182,  183,  pp.  263,  264. 

commissions,  use  or  non-use  of,  178,  179,  pp.  259,  260. 

fixture  investments,  L,  M,  pp.  27,  29;  190,  p.  274;  197-201,  pp.  283- 

289;  205,  p.  294. 
inventories,  G,  p.  19;  138,  p.  208;  149-153,  pp.  220-225. 
location  of  store,  Chart  VI,  p.  15;  125,  127,  pp.  193,  195;  132-135, 

pp.  200-203. 
rent,  K,  p.  25;  185,  187,  188,  pp.  267,  269,  270. 
sales  per  full-time  sales-person,  J,  p.  23;  157,  p.  232;  166-171,  pp. 

245-251;  174,  175,  pp.  254,  255. 
size  of  store.  Charts  V,  VI,  pp.  14,  15;  E,  p.  16;  123,  p.  191;  132-135, 

pp.  200-203. 
turnover,  stock,  211,  p.  303. 

years,  Chart  IV,  p.  13;  121,  123,  pp.  188,  191;  125,  127,  pp.  193,  195. 
per  store,  120,  121,  p.  188;  124,  125,  pp.  192,  193. 
defined,  p.  187. 

reduction  of,  methods  of,  see  Reduction  of  expenses,  and  Summary, 
relation  of,  to 

inventories,  see  Inventory, 
sales  per  full-time  sales-person,  see  Sales. 
Expenses,  tendencies  of,  for  different  conditions  of  store  operation,  see  Sum- 
mary. 

Fixture  account,  amounts  of, 
per  $100  of  sales,  in  relation  to 
advertising,  271,  p.  376;  277-280,  pp.  383-387. 

412 


Fixture  account,  amounts  of, 
per  $100  of  sales,  in  relation  to 

selling  expense,  85,  88,  pp.  143,  147;  93-96,  pp.  152-155. 
per  100  sq.  ft.  of  floor  space,  in  relation  to 

selling  expense,  106,  p.  169. 
relation  of,  to 

advertising,  see  Expense,  Advertising. 

other  selling  expense,  see  Expense,  Other  selling. 

total  selling  expense,  see  Expense,  Selling. 

wages  and  salaries,  see  Expense,  Wages  and  salaries, 
reduction  of  expenses  through  reducing  fixtures  per  $100  of  total  net  sales, 
pp.  161,  163,  170,  290,  295. 
Floor  space,  amounts  of, 

per  $100  of  sales,  in  relation  to 

rent,  76,  79,  pp.  130,  134;  81,  83,  pp.  137,  140. 
per  store,  in  relation  to 

fixture  investments,  103,  p.  165. 

rent,  75,  78,  83,  pp.  128,  132,  140. 
reduction  of  expenses  through  saving  in  floor  space,  pp.  133,  139,  166, 
170,  271,  291,  295. 
Gross  margin, 
defined,  p.  4. 
index  of,  in  relation  to 

net  profit,  292,  293,  pp.  403,  404;  Chart  VII,  p.  405. 

rent,  83,  p.  140. 

Inventory, 

Average,  defined,  p.  4. 
Yearly, 

amounts  of,  per  $100  of  sales,  in  relation  to 
advertising,  230,  p.  324;  237-240,  pp.  332-335. 
selling  expense,  20,  p.  56;  28-31,  pp.  67-70. 
wages  and  salaries,  137,  p.  207;  145-148,  pp.  216-219. 
reduction  of  expenses  through  control  of,  pp.  58,  66,  70,  83,  85,  221,  226. 
relation  of,  to 

advertising,  see  Expense,  Advertising. 

other  selling  expense,  see  Expense,  Other  selling. 

total  selling  expense,  see  Expense,  Selling. 

turnover,  stock,  see  Turnover. 

wages  and  salaries,  see  Expense,  "Wages  and  salaries. 

Merchandise  sold,  cost  of,  see  Cost  of  merchandise  sold. 

Methods  of  compensating  regular  salesmen,  pp.  118-127 ;  pp.  258-263.     See 

also  Bonus,  Commission. 
Methods  of  reducing  expenses,  see  Reduction  of  expenses. 

Net  profit, 

defined,  p.  4. 

index  numbers  of,  in  relation  to  rent,  83,  p.  140. 

relation  of,  to 

cost  of  merchandise  sold,  see  Cost  of  merchandise  sold. 

413 


Net  profit, 
relation  of,  to 

gross  margin,  see  Gross  margin. 

selling  expense,  see  Expense,  Selling. 

total  operating  expense,  see  Expense,  Total  operating. 

Profit,  net,  see  Net  profit. 
gross,  see  Gross  margin. 
Purpose  of  undertaking  the  study,  p.  1. 

Reduction  of  expenses  through  control  of 

advertising,  pp.  179, 185,  304. 

fixture  account,  pp.  161,  163,  170,  290,  295. 

floor  space,  pp.  133,  139,  166,  170,  271,  291,  295. 

inventories,  pp.  58,  66,  70,  83,  85,  221,  226. 

methods  of  paying  salesmen,  pp.  120,  122,  126,  127,  260-262. 

sales  per  full-time  sales-person,  pp.  90,  92,  104,  107,  118,  230,  241,  256. 

turnover,  stock,  pp.  77,  85,  226. 
Rent,  relation  of,  to 

advertising,  see  Expense,  Advertising. 

floor  space,  see  Floor  space. 

selling  expense,  see  Expense,  Selling, 

wages  and  salaries,  see  Expense,  Wages  and  salaries. 

Salaries,  see  Expense,  "Wages  and  salaries. 
Sales,  total  net,  amounts  of, 
per  full-time  sales-person, 
in  relation  to 

selling  expense,  44,  48,  pp.  88,  95;  53-56,  pp.  101-104. 
rent,  83,  p.  140. 

wages  and  salaries,  155,  160.  pp.  229,  237. 
reduction  of  expenses  by  increasing  the,  pp.  90,  92,  104,  107,  118,  230 
241,  256. 
per  $100  of  advertising, 

in  relation  to  amount  of  sales  per  full-time  sales-person,  254,  p.  355. 
per  100  square  feet  of  floor  space  in  relation  to 

rent,  83,  p.  140. 
per  $100  of  wages  and  salaries  in  relation  to 
fixtures,  192,  204,  pp.  277,  293. 

sales  per  full-time  sales-person,  156,  161,  pp.  231,  239. 
per  store,  2,  6,  pp.  35,  39;  83,  p.  140;  120,  124,  pp.  188,  192. 
relation  of,  to 

advertising,  see  Expense,  Advertising, 
other  selling  expense,  see  Expense,  Other  selling, 
total  selling  expense,  see  Expense,  Selling, 
wages  and  salaries,  see  Expense,  Wages  and  salaries. 
Salesmen, 

amounts  sold  by,  see  Sales. 

methods  of  compensating,  see  Bonus,  Commissions. 
Selling  expense,  see  Expense,  Selling. 
Stock,  average,  see  Average  stock, 
turnover,  see  Turnover,  stock. 

414 


Summajy 

Advertising  expense,  amounts  of, 

per  $100  of  sales,  in  relation  to  fixture  investments,  L,  p.  27,  and  p. 
385;  inventories,  F,  p.  17,  and  pp.  326,  342,  347;  store  loca- 
tion, B,  p.  7,  and  p.  320;  rent,  p.  374;  sales  per  full-time  sales- 
person, H,  p.  ^0,  and  p.  .570/  selling  expense,  p.  183;  size  of 
store.  A,  B,  C,  pp.  5,  7,  8,  and  320;  turnover,  stock,  p.  348; 
years,  A,  p.  5,  and  pp.  507,  ^iS. 

per  $100  of  selling  expense,  in  relation  to  fixture  investments,  L,  p.  27, 
and  p.  385;  inventories,  G,  p.  i5,  and  pp.  326,  342,  348;  store 
location.  Chart  VI,  p.  15,  and  p.  5^0;  rent,  p.  J74;  sales  per 
full-time  sales-person,  J,  p.  5J,  and  p.  57i;  size  of  store,  E, 
Charts  V,  VI,  pp.  14-16,  and  p.  320;  years,  Chart  IV,  p.  i5, 
and  pp.  307,  319. 
Floor  space,  amounts  of, 

per  store,  in  relation  to  rent,  p.  140. 

per  $100  of  sales,  in  relation  to  rent,  p.  140. 
Inventory,  yearly,  total,  amounts  of, 

per  $100  total  net  sales  in  relation  to  advertising,  pp.  342,  348;  total 
selling  expense,  p.  69;  years,  p.  85. 
Other  selling  expense,  amounts  of, 

per  $100  of  sales,  in  relation  to  store  location,  B,  p.  7,  and  p.  397;  size  of 
store.  A,  B,  C,  pp.  5,  7 ,  8,  and  p.  396;  years,  A,  p.  5  and  p.  396. 

per  $100  of  selling  expense,  in  relation  to  store  location,  Chart  VI,  p. 
15,  and  p.  397 ;  size  of  store,  E,  Charts  V,  VI,  pp.  14-16,  and 
p.  396;  years.  Chart  IV,  p.  13,  and  p.  396. 
Sales,  total  net,  amounts  of, 

per  full-time  sales-person,  in  relation  to  amount  of  wages  per  $100  of  sales, 
p,  257;  size  of  store,  p.  257 ;  years,  pp.  232,  256. 

per  $100  of  wages  and  salaries,  in  relation  to  sales  per  full-time  sales- 
person, p.  257;  size  of  store,  p.  257;  years,  p.  233. 
Selling  expense,  total,  amounts  of, 

per  $100  of  sales,  in  relation  to  advertising,  N,  p.  31,  and  p.  185;  bonus, 
pp.  126,  127 ;  commissions,  pp.  120,  122;  fixture  investments, 
L,  M,  pp.  27,  29,  and  pp.  163,  170;  inventories,  F,  p.  17,  and 
pp.  57,  69,  85;  store  location,  B,  p.  7,  and  p.  52;  rent,  K,  p. 
25,  and  pp.  139,  140;  sales  per  full-time  sales-person,  H,  p.  20, 
and  pp.  89,  102,  118;  size  of  store.  A,  B,  C,  pp.  5,  7,  8,  and 
p.  52;  turnover  stock  pp.  79,  85,  164;  years.  A,  p,  5,  and  p.  52. 

per  100  square  feet  of  floor  space,  in  relation  to  fixture  investments,  p.  170. 

per  $100  of  total  expense,  in  relation  to  advertising,  N,  p.  31,  and  p.  185; 
bonus,  pp.  126,  127;  commissions,  pp.  120,  122;  fixture  in- 
vestments, L,  p.  27,  and  p.  164;  inventories,  G,  p.  19,  and  pp. 
60,  85;  store  location,  Chart  III,  p.  11,  and  p.  52;  sales 
per  full-time  sales-person,  I,  p.  22,  and  pp.  89,  118;  size 
of  store,  D,  Charts  II  and  III,  pp.  10-12,  and  p.  52;  turnover, 
stock,  pp.  79,  85;  years.  Chart  I,  p.  9,  and  p.  52. 
Wages  and  salaries,  amounts  of, 

per  $100  of  sales,  in  relation  to  advertising,  N,  p.  31,  and  p.  304;  bonus, 
pp.  261,  262;  commissions,  pp.  260,  262;  fixture  investments, 

415 


L,  M,  pp.  27,  29,  arid  pp.  290,  295;  inventories,  F,  p.  17,  and  pp. 
226,  290;  store  location,  B,  p.  7,  and  p.  204;  rent,  K,  p.  25,  and 
p.  271;  sales  per  full-time  sales-person,  H,  p.  20,  and  pp.  233, 
250,  256;  size  of  store,  A,  B,  C,  pp.  5,  7,  8,  and  p.  204;  turn- 
over, stock,  p.  305;  years,  A,  p.  5,  and  p  204. 
Summary 

Wages  and  salaries,  amounts  of, 

per  $100  of  selling  expense,  in  relation  to  advertising,  N,  p.  31,  and  p.  304; 
bonus,  pp.  261,  262;  commissions,  pp.  260,  262;  fixture  invest 
ments,  L,  M,  pp.  27,  29,  and  pp.  290,  295;  inventories,  G,  p.  19 
and  p.  226;  store  location.  Chart  VI,  p.  15,  and  p.  204;  rent,  K 
p.  25,  and  p.  271;  sales  per  full-time  sales-person,  J,  p.  23 
and  pp.  250,  256;  size  of  store,  E,  Charts  V  and  VI,  pp.  14-16 
and  p.  204;  turnover,  stock,  p.  305;  years,  Chart  IV,  p.  13 
and  p.  204. 
Total  expense,  see  Expense,  Total  operating. 
Turnover,  stock, 

rates  of,  in  relation  to 
advertising,   249,   p.   347. 
inventories,  40,  41,  pp.  82,  83. 
rent,  83,  p.  140. 
reduction  of  expenses  by  means  of,  pp.  77,  85,  226. 
relation  of,  to 

advertising,  see  Expense,  Advertising, 
total  selling  expense,  see  Expense,  Selling, 
wages  and  salaries,  see  Expense,  Wages  and  salaries. 
Units  used   explained,  p.  4;  use  of,  for  measuring  expenses,  p.  3. 
Wages,  see  Expense,  Wages  and  salaries. 


416 


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